By Kevin Orland
Dec. 22 (Bloomberg) -- Fronteer Development Group Inc., the owner of the Northumberland gold project in Nevada, plans to bid for the Aurora Energy Resources Inc. shares it doesn’t own for about C$109.4 million ($91 million) to add uranium deposits.
Aurora’s investors would receive 0.825 of a Fronteer share for each share they hold, Vancouver-based Fronteer said today in a statement. The offer is more than double Aurora’s most recent closing price.
The acquisition would give Fronteer full control of Aurora, which explores for uranium in the Central Mineral Belt of Labrador in Canada. Fronteer is Aurora’s largest investor, holding about 42 percent of the shares.
Investors holding 26 percent of Aurora’s shares have agreed to the offer, Fronteer said.
Fronteer rose 11 cents, or 3.6 percent, to C$3.13 in Toronto Stock Exchange trading Dec. 19. The shares have declined 69 percent this year. Vancouver-based Aurora rose 2 cents, or 2.1 percent, to 97 cents in Toronto Dec. 19. The shares have dropped 93 percent this year.
For Related News: Fronteer earnings: FRG CN
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