A Greenwich investment fund announced a takeover bid for Oro Mining Ltd., a gold prospecting company based in Vancouver, British Columbia that is pursuing projects in Mexico.
The TSX Venture Exchange suspended trading in the company”™s shares (TSX: OGR.VN) at 9:30 a.m. Thursday June 14.
Wexford Capital Ltd. is offering 11 cents a share for Oro, with the issue trading at 7 cents at the closing bell on June 13. As of May, Oro listed 262 million shares outstanding on a fully diluted basis.
Oro lost $1.1 million in the first quarter, after raising $7.9 million in financing in February.
Through funds, Wexford holds 40.6 million shares of Oro, along with warrants to acquire 3.6 million shares at 50 cents a share, valid through next January; and warrants for 17 million more shares at 20 cents each that expire in January 14.
Wexford calculates its “security-holding percentage” at 29 percent of Oro”™s issued and outstanding common shares, assuming the full exercise of the warrants.
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