China-based CNNC Overseas Uranium Holding has made a takeover bid for Canadian company Khan Resources, which has the Dornod Uranium Project in Mongolia.
The takeover comes hot on the heels of Khan announcing a joint venture with Mongolian state agency Monatom and Monatom agreeing to buy 20% of Khan.
Khan’s directors have recommended the full $51.8 million takeover by CNNC Overseas Uranium.
The price is 18% higher than an offer made before Russian ARMZ's unsolicited bid last year and almost twice what they offered.
Khan’s CEO Martin Quick says: “We look forward to working with CNNC to build on the progress we have made in Mongolia towards establishing a stable platform for developing the Dornod uranium project and bringing it into operation.”
ARMZ responded to the news by extending its bid and suggesting that the Khan-Monatom agreement was legally dubious.
After an unsuccessful takeover bid by Khan, Western Prospector Group, another Canadian-based company with Mongolian prospects, last year agreed to a US$25 million takeover by a subsidiary of CNNC Overseas Uranium Holding. That corporate amalgamation was completed in August 2009.
- News courtesy of World Nuclear News