Red Eagle Mining’s (RD.V) final deadline for CB Gold (CBJ.V) shareholders to tender their shares to the Red Eagle offer has expired, and the company is taking up 76.8M shares. Today, those 76.8M shares of CB Gold will be swapped for 12.44M new Red Eagle shares which should start trading as of today.
Red Eagle was allowed to take up these shares as the BCSC has cancelled CB Gold’s shareholders rights plan, as requested by Red Eagle. Unfortunately the placement to Batero Gold remains standing, and it will be very interesting to see which side will win this battle and none of both potential acquirers might obtain a majority. This could mean that the largest shareholder will have to push its decisions through on annual meetings of CB Gold by for instance replacing the board of directors of the company.
CB Gold shareholders now have an additional 10 day period (expiring on September 25) to tender more shares to Red Eagle Mining and we expect some more shares will come out of the woods.
Disclosure: The author holds a long position in Red Eagle Mining. Red Eagle is a sponsor of the website. Please see our disclaimer for current positions.