Eldorado Gold Corp. (EGO) offer for Frontier Pacific Mining Corp. (FRPMF.PK) rejected.

As expected, Frontier Pacific has rejected the current Eldorado offer as inadequate. Frontier cited the following as key reasons for the rejection:

 

•The Eldorado Offer is an opportunistic attempt to acquire Frontier Pacific before Frontier Pacific Shareholders can realize full value for their Frontier Pacific Shares as the Perama Hill project advances toward permitting, development and production;

• Frontier Pacific is currently in discussions with other parties who have expressed an interest in pursuing potential alternative transactions that may provide value to Frontier Pacific Shareholders superior to the Eldorado Bid; and

• Frontier Pacific has the management capabilities and relationships necessary to achieve permitting of the Perama Hill project.

 

As discussed previously, this event is expected to prompt Eldorado to increase its offer to a level in which serious negotiations can be initiated between the two companies. Failing an increased offer, there appears to be virtually no chance that a transaction will occur in this situation.

Disclosure: We have no positions of any kind, in any security. We are a completely neutral source of research and analysis.

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