2013-08-22 00:56:01 -
Vancouver, British Columbia, August 21, 2013 - Zara Resources' CEO, Danny
Wettreich, is again taking steps to shake up the management of some of the
junior resource companies listed on the TSX Venture Exchange.
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Takeover" in the search box.
This time, Zara Resources, which trades on the Canadian National Stock Exchange
under the symbol ZRI, has announced all share offers to acquire 100% of the
issued capital of the following three junior resource companies:
Shareholder's of Visible Gold Mines Inc., (TSXV:VGD), would receive $0.05 per
shares payable by 0.4167 shares of Zara for each Visible share. Based on a
recent price for Zara of $0.12, and $0.025 for
Visible, this is a premium of
more than 200%.
Shareholder's of Greencastle Resources Ltd., (TSXV:VGN), would receive $0.14 per
share payable by 1.1667 shares of Zara for each Greencastle share. Based on
Greencastle's recent price of $0.06, this is a premium of 133%.
Shareholder's of Altai Resources Inc., (TSXV:ATI), would receive $0.17 per share
payable by 1.4167 shares of Zara for each Altai share. Based on Altai's recent
price of $0.085, this is a premium of 100%.
Assuming acceptance of the offer, Zara will have approximately 191.3 million
shares outstanding, and a market capitalization of $23 million.
The enlarged Zara group of companies will have approximately $13.7 million in
net cash and securities, after payment of all current liabilities. It will also
have a portfolio of gold, nickel-copper, and oil & gas properties, located
across Canada in Quebec, Ontario, British Columbia, Alberta and Saskatchewan,
and also in Nevada, USA.
Danny Wettreich stated, "This is a dramatic and innovative simultaneous offer
for three public companies, and is designed to offer the shareholders of these
companies the opportunity of participating in the creation of a viable natural
resource company led by the dynamic, experienced and innovative management team
of Zara. I expect annual savings of approximately $1.2 million by putting these
According to the Zara announcement, over the last three years, these three
targeted companies have seen share price declines ranging from 79% to 96%, while
their directors have paid themselves a total of $2.5 million.
In addition, Zara believes that most of these shareholders are underwater, and
can therefore establish a tax loss by accepting the takeover offer.
This bold move will undoubtedly have other Boards of Directors rethinking their
For more information about Zara, please visit the company's website at
www.ZaraResourcesInc.com, call Danny Wettreich at 647-931-9775 or email
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Barry Morgan, CFO
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Source: InvestmentPitch via Thomson Reuters ONE