Aurelian receives a millionaire bid for its proposed gold

The Canadian Kinross 1 200 million USD offered by the actions that have Aurelian in the project located in Zamora Chinchipe, southeast of Ecuador.

Aurelian received yesterday a proposed friendly merger by the Canadian consortium also Kinross. The offer includes the purchase of 100% of its shares by more than $ 1 200 million.

Aurelian dealership is a gold mining project, located in Zamora Chinchipe and is in exploration phase.

In March this year received an acknowledgement of the Prospector & Developers Association of Canada (PDAC), in Toronto, who have made the largest discovery of gold in the world broadcast last year.

The initial estimate of its reserves in Ecuador is 13.7 million ounces of gold and 22.3 million ounces of silver.

According to a communique issued by Aurelian in the Toronto Stock Exchange, the boards of both companies approved this proposal, but may be analysed in the next 35 days.

According to the owner of Aurelian in Ecuador, Dominic Channer, last Wednesday the signing of directors held a meeting with the authorities of mining Ecuadorian Government to communicate this offer.

"It's an attractive offer that is being analyzed by the shareholders," he added.

The offer of Kinross has a value of $ 8.20 for each share of Aurelian, which represents a premium of 63% to Aurelian.

The Board of Aurelian, after receiving a recommendation by the special committee of independent directors established to oversee the transaction, unanimously determined that the supply of Kinross is beneficial to the shareholders of Aurelian. Therefore recommended that those selling their shares to Kinross.

According to BMO Capital Markets and Dundee Securities, financial advisers Aurelian, the supply of Kinross is "fair, from a financial point of view, for its shareholders," noted the statement by the mining company.

But the merger is not without alarming the shareholders of Kinross, who expressed concern over the atmosphere of uncertainty in Ecuador, to Canadian media.

This by changes to mining regulations adopted by the Assembly on April 19 last. This implied a fall of over 50% in the value of the shares of Aurelian on that day. It's in agenda the adoption of a draft of the new Mining Law, which has not yet been disseminated by the regime, although it is ready since three weeks ago.