UPDATE: Hathor Exploration Hits New Yr Highs After Urging No Action By Shareholders To Cameco Interest
Hathor Exploration Limited (HAT.TO) has soared to new year highs early Tuesday after saying yesterday afternoon it is aware that Cameco Corporation (CCO.TO) intends to proceed with a hostile and unsolicited all cash take-over bid for Hathor at a price per Hathor common share of $3.75. The announcement stated that the bid will be open for at least 60 days from the time it is made. Hathor said it has not yet been provided with a formal offer and so is not in a position to respond. Hathor added it will issue a strong and detailed response to the offer after it has received and reviewed the bid materials, and received guidance and input from its financial and legal advisors. Cameco is unchanged at $22.20 Tuesday morning.
Michael Gunning, CEO and President of Hathor, said: "Our Special Committee and our Board will complete a full review of the formal bid materials before we respond. Similarly, the company urges its shareholders not to respond to the Cameco offer until the company has received the formal offer and has had sufficient time to respond to the offer and make available to shareholders both information on the economic parameters for Roughrider, and insights into the global dynamics of primary uranium mine supply and how they relate to the value of Roughrider. The company has a Special Committee of independent directors in place to consider such offers and ensure that value for our shareholders is maximized."
Hathor believes the offer from Cameco is "opportunistic", leveraging the market capitalization set-back in this industry post-Fukushima, and announced just prior to Hathor's planned release of the first economic assessment of the Roughrider uranium deposit, anticipated in mid-September. Hathor's closing share price was a material premium to Cameco's offer on the day Cameco announced its intent.
Subsequent to the successful acquisition of Terra Ventures Inc. (TER.V), Hathor owns 100% of the Roughrider uranium deposit.
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