Allied Nevada Responds to China Gold Stone Announcement
January 14, 2014 | Reno, Nevada - Allied Nevada Gold Corp. (“Allied Nevada” or the “Company”) (TSX: ANV; NYSE-MKT: ANV) would like to respond to an announcement from a company named China Gold Stone Mining Development Limited (“China Gold Stone”) indicating that it has commenced a tender offer to acquire all of the outstanding shares of the Company (the “Announcement”).
Allied Nevada received a letter from China Gold Stone yesterday which included such a proposal (the “Proposal”), however, for a number of reasons, the Company seriously questions the credibility of the Proposal and advises shareholders to review announcements from China Gold Stone with caution. The Company identified the following concerns with China Gold Stone’s announcement and the Proposal.
Concerns with China Gold Stone:
Together with its advisors, Allied Nevada has not been able to find any substantive published information on China Gold Stone and cannot substantiate the credibility of the Proposal.
There is no public information available to indicate that China Gold Stone has the financial resources to complete the proposed transaction.
Concerns with the Alleged Proposal:
Contrary to the Announcement, No Tender Offer has Been Commenced.
Pursuant to US federal securities laws, a tender offer commences upon the filing of a Schedule 14D-1 with the Securities and Exchange Commission (“SEC”) and no such filing has been made.
The Announcement indicates an expiry date of January 24, 2014, which is contrary to U.S. and
I don’t think this proposal is valid, but I do think there will be several more. This stock is super cheap, and the Hycroft mine is one of the best economic gold mines in the world.