Zara Resources Mails Offering Material Documents to Shareholders of Visible Gold – Video Posted on InvestmentPitch.com
Vancouver, British Columbia--(Newsfile Corp. - June 21, 2013) - Zara Resources (CNSX: ZRI), has followed up its recent offer to purchase up to 19.9% of the shares of Visible Gold Mines (TSXV: VGD), by sending out a letter to shareholders containing all the documents required to tender the Visible shares.
Danny Wettreich, President and CEO of Zara commented that the offer price is a premium of 125% to the price of Visible shares prior to the offer.
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Mr. Wettreich stated, "I am also a shareholder of Visible. I have requisitioned a Special Meeting of the shareholders of Visible in order to replace the current board of directors of Visible with Zara's nominees, and I am seeking your support."
According to the latest news release issued by Zara Resources:
- The current Directors only own 1.6% of Visible's shares
- They have received $769,585 in fees in the last 3 years
- They have spent over $12 million with little result and no commercially viable gold deposit being identified
- They recently stated "…a significantly depressed share price provides the Corporation with few alternatives other than to significantly reduce its exploration activities."
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In addition, Mr. Wettreich stated that, "Despite being inactive, the Current Directors continue to draw their fees. With that record, there is no reason for the Visible shareholders to continue with the Current Directors."
All information regarding the offer, including the proposed new slate of Visible Gold directors, the reasons why current Visible shareholders should tender their shares, and the Letter of Transmittal are available for viewing at www.ZaraVisibleSupportTheNewBoard.com.
The Offer to purchase up to 11,369,767 shares of Visible Gold, representing up to 19.9% of the issued and outstanding shares of Visible, is open only to Accredited Investors, as defined in applicable securities legislation, that are domiciled in Canada. The Offer will remain open until July 25, 2013.
The Offer is priced at $0.03375 per share to be satisfied by the issuance of Zara shares, with tendering shareholders receiving 0.28125 shares of Zara in exchange for each tendered share of Visible.
Zara is a Toronto based mineral company developing its Forge Lake gold project and its Pigeon River nickel-copper project in Ontario.
Zara is currently trading at $0.12, and with 33.4 million shares outstanding, is capitalized at $4 million.
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Barry Morgan, CFO