Tip:
Highlight text to annotate it
X
I'm Megan Edwards for Investmentpitch.com
Zara Resources, which trades on the CNSX under the symbol ZRI, has announced an offer to
purchase up to 19.9% of the outstanding shares of Visible Gold, which trades on the TSX Venture
Exchange under the symbol "VGD", where its current price is $0.015.
The offer, set at $0.03375 per Visible share, represents a premium of approximately 125%
to Visible Gold's recent price of $0.015, and is open only to shareholders in Canada
who are Accredited Investors, as defined in applicable securities legislation.
Tendering shareholders will receive 0.28125 shares of Zara in exchange for each share
of Visible Gold, based on the $0.015 price of Visible Gold and the $0.12 trading price
of Zara.
Assuming the maximum of 19.9% of the outstanding shares are tendered, the offer would represent
a total of 11,369,767 shares of Visible Gold.
Danny Wettreich, Zara's CEO, has advised Zara that he will be tending his shares, which
represent 5% or approximately 2.857 million shares of Visible Gold.
Full details of the offer and a Letter of Transmittal, will be included in a letter
to shareholders of Visible Gold.
Mr. Wettreich commented, "The Current Board of Visible completed private placements since
October 2010 at prices as high as $0.80, and at an average price of $0.41. As of the latest
financial statements dated January 31, 2013, the Current Board has spent 96% of the $12,600,000
raised from these private placements without any commercially viable gold deposit being
identified."
He also stated, "Further, the Current Board owns only 1.6% of Visible and in the last
three years has been paid $796,585 in fees. I think if shareholders of Visible want to
improve the value of their investment they should either tender their shares to Zara
or support Zara's nominees for the proposed new board of directors."
Zara intends to replace the current board of Visible with the following nominees, Danny
Wettreich, Scott F. White, and Peter Wanner, all of whom have extensive experience with
public companies, including several CNSX listed companies.
Alan Aubut, who has extensive experience in mineral exploration, resource estimation,
and project development, including 30 years with Inco, is also on Zara's nominee list.
If elected, the new board plans several actions, including seeking to delist Visible from the
TSX Venture Exchange and applying for a listing on the CNSX, which will substantially reduce
the cost of maintaining the public listings of Visible, as well as enabling future business
transactions to occur more promptly and efficiently.
Zara has established a website at www.ZaraVisibleSupportTheNewBoard.com, which has full information on the offer, the
proposed new Visible board of directors, and the reasons why shareholders of Visible should
support the new board.
Zara is a Toronto based mineral company developing its Forge Lake gold project and its Pigeon
River nickel-copper project in Ontario.
It is currently trading at $0.12, and with 33.4 million shares outstanding, is capitalized
at $4 million.
For more information please visit the company's website at www.zararesourcesinc.com, call
Danny Wettreich at 647-931-9775 or email dw@zararesourcesinc.com.
I'm Megan Edwards for Investmentpitch.com For more video news, and to view our disclaimer,
please visit our website at www.investmentpitch.com This video is for information purposes only
and it not a recommendation to buy or sell any securities.