Gold Target Fends Off Bidder

Gold Reserve is fighting off an unsolicited offer from Rusoro Mining, citing a conflict of interest at Rusoro advisor Endeavour Financial. The potential target alleges that Endeavour also provides advisory services to Gold Reserve and has in-depth knowledge of confidential and proprietary information about the miner. Because of this, Gold reserve is seeking an injunction restraining Rusoro and Endeavour from proceeding with the unsolicited offer, significant monetary damages, and various other items. Rusoro is offering to buy each of Gold’s outstanding shares and equity units for three shares of its own. Gold Reserve has retained RBC Capital Markets and JPMorgan as financial advisors, and Fasken Martineau DuMoulin and Baker & MacKenzie as legal advisors to evaluate the offer