May 2, 2018 ~ The Board of Maritime Resources is telling its shareholders to reject a hostile takeover bid from Anaconda Mining.
Maritime’s Board called Anaconda’s offer inadequate.
Anaconda Mining Inc. has made it clear it wants Maritime’s property and on April 13th Anaconda put an offer to Maritime’s shareholders. If successful, this would see Anaconda taking over Maritime.
But Maritime’s Board has just told its shareholders:
“Don’t be fooled by Anaconda’s low-ball, opportunistic share exchange offer.
“They offered one third of the value for our assets (and one-fifth based on current prices) with shares that are trading at highly inflated prices.
“They are spending more money than they are making and they have less than five months of reserves.
“Anaconda wants to use your money to fund their agenda.”
Maritime’s Board is recommending shareholders reject Anaconda’s offer. Maritime asserts the hostile bid undervalues the Maritime shares and isn’t “good value”.
Maritime added that “… additional concern is that Anaconda is offering shares [which are declining in value] in exchange for Maritime shares and not cash.”
In its April 30th letter to its shareholders, Martime’s board went on to assert that Anaconda’s future is “highly uncertain”. Maritime’s Board stated:
“Anaconda’s share price is being temporarily inflated by their share consolidation, completed in January 2018, and a recent unsubstantiated share price appreciation, while having nearly exhausted their reserve base. As a result, the “premium” in their offer is likely to disappear as production at their Pine Cove mine winds down over the coming months and a lack of new revenue will put a strain on the little available cash they have. Effectively, the Hostile Bid is a scheme to take advantage of a temporary elevation in the price of their shares and offer a “premium” for your Maritime shares.”
Maritime claims Anaconda’s assets are quickly depleting. It claims that “a dwindling stockpile of ore and mines that will either end production before July 2018 or be inactive until further investment is made, Anaconda has not made public their plan to create new revenue streams for its shareholders.”
Maritime claims that Anaconda is “spending more than it is making” and “does not have the funds to move the Hammerdown project forward…”
Also in its news release yesterday, Maritime reiterated its plan for moving Hammerdown into production.
It said that Rambler’s Nugget Pond Mill, which Maritime would use, “would require only modest capital to construct an additional grinding circuit, and Rambler could easily place the gold stream into production.”
Maritime also highlighted the experience of its management:
“we recently added significant underground mine development experience to our management team with the addition of Andrew Pooler as Chief Operating Officer and Larry Pilgrim as Hammerdown Project Manager.”
As well, on April 27th Maritime announced it is working to raise a further $1 000, 000 to go towards moving its Hammerdown project, as well as the company’s Whisker Valley project, into production.
Read the full Maritime May 1st news release here
Related articles on greenbayfeed.com: