The Global Resource For Connecting Buyers and Sellers

ATAC board rebuffs Victoria Gold takeover bid

The Toronto-quoted equity of explorer ATAC Resources (TSXV: ATC) jumped about 38.5% on Monday following the weekend announcement by Victoria Gold (TSX: VGCX) of a takeover bid at an 85% premium.

While the all-scrip deal values ATAC at C12¢ per share, implying a value of C$25 million ($18.7m), ATAC’s board has rejected the unsolicited offer, prompting Victoria on Monday to extend the offer to Feb. 17 to give the ATAC board more time to reconsider.

ATAC’s main asset is the Rackla gold property in Canada’s Yukon Territory. Rackla contains the Rau project, which hosts the Tiger deposit of 4.5 million tonnes grading 3.19 grams gold per tonne for 464,000 oz. in the measured and indicated categories. This includes an open pit deposit of 386,000 oz. measured and indicated grading 3.31 grams per tonne. The open-pit deposit has a measured and indicated oxide resource of 238,000 oz. grading 3.74 grams gold in 2 million tonnes of material.

Rau’s 2020 preliminary economic assessment outlines an annual output of 445,000 oz. Rau also contains multiple exploration targets with gold and base metals discoveries.

Rackla also contains the Nadaleen project, another group of targets with the most advanced being Osiris which holds an indicated resource of 5.5 million tonnes grading at 4.12 grams gold per tonne for 732,000 oz. gold, and inferred resources of 9.4 million tonnes grading 3.47 grams gold per tonne for 1 million oz.

ATAC’s other properties include the Connaught, Catch and Rosy projects in Yukon and the PIL property in B.C.

A disappointed Victoria president and CEO, John McConnell, said Monday that Victoria had the experience to move the Rackla projects forward.

“With our demonstrated track record permitting, financing, constructing and operating the Eagle Gold mine in Yukon, we believe that we can add value to ATAC’s portfolio, which would benefit shareholders of both companies,” he said in a statement. “Our offer is more than reasonable given that, although we see opportunities at ATAC’s properties, we are also aware that risks lie ahead, including the uncertainty surrounding the advancement of permits at the Rackla gold property.”

Source: MINING.COM – Read More