Following a thorough examination, ATAC Resources found that the unsolicited non-binding takeover proposal did not fully capture its value


ATAC Resources rejects takeover offer from Victoria Gold. (Credit: Martina Janochová from Pixabay)

Canada-based exploration company ATAC Resources has confirmed that the company has received an unsolicited non-binding takeover proposal from Victoria Gold.

Under the proposal, Victoria Gold offered to acquire 100% of the issued share capital of ATAC for C$0.12 ($0.09) per ATAC Resources share, which will be payable in Victoria Gold’s shares.

The offer price for the exploration company represented a 36.4% premium to its closing share price at the time of the proposal.

According to ATAC Resources, the proposal had multiple deal conditions.

After receiving the proposal, ATAC Resources engaged Stikeman Elliott and Agentis Capital Mining Partners as legal and financial advisors, respectively, to assess the offer.

Following a thorough examination, ATAC Resources found that the proposal did not fully capture its value. However, the company indicated that it could engage in further discussions with Victoria for a ‘more fairly valued’ transaction.

ATAC Resources fully owns the Rackla gold property located in central Yukon, Canada. It spans across an area of 1,700km2 and comprises two separate projects namely Rau and Nadaleen.

ATAC Resources president and CEO Graham Downs said: “The Rackla Gold Property represents an immense landholding with no underlying royalties. It encompasses two known mineral districts, with significant gold resources and vast precious, base and critical metals potential.

“ATAC has been actively exploring in Yukon for over 20 years and has a strong working relationship with Yukon Government and the First Nation of Na-Cho Nyak Dun.

“With over $4m in cash in our treasury, a strong resource base at Rackla, and compelling discovery potential across our project portfolio, we believe this offer does not reflect the significant value of ATAC.”

Separately, Victoria Gold has notified that its proposed offer to ATAC Resources will expire on 17 February 2023.

According to Victoria Gold, its offer is fair and generous consideration for ATAC shareholders.