ROUYN-NORANDA, QC, Sept. 16, 2013 /CNW Telbec/ - Visible Gold Mines Inc. (TSXV: VGD) (Frankfurt: 3V4) is pleased to announce that following a hearing held on Wednesday, September 11, 2013, the Québec Bureau de décision et de révision issued on Friday, September 13, 2013, a cease-trade order against the unsolicited offer by Zara Resources Inc. (CNSX: ZIR) to purchase 100% of the outstanding shares of Visible Gold Mines in exchange for shares of Zara Resources.
The Bureau's decision was in response to an application filed on September 6, 2013 by Visible Gold Mines and the two other companies subject to the offer, which cited major irregularities and deficiencies in the unsolicited offer by Zara Resources.
As a result of the cease-trade order, Zara cannot take-up any Visible Gold Mines shares that may have been tendered in response to Zara's offer, nor issue any Zara shares in payment for the tendered shares.
Pierre Vézina, Chair of the Special Committee of the Visible Gold Mines Board of Directors said, "We are very gratified that the Bureau issued a cease-trade order against Zara's illegal offer. Protection of our shareholders is a fundamental obligation of the Board of Directors of Visible Gold Mines. We believed it was necessary for Visible Gold Mines to bring this matter before the Bureau in order to ensure that Zara's offer complies with Québec law."
The Bureau specifically noted that: (i) the Zara bid did not comply in important respects with applicable securities laws, (ii) the Zara circular was incomplete, and (iii) the Zara circular does not permit the shareholders of Visible Gold Mines to make an enlightened decision in determining how to respond to Zara's offer.
The Bureau also ordered that Zara and its agents stop from soliciting, or communicating with, in any manner whatsoever, the shareholders of Visible Gold Mines in connection with Zara's offer, until such time as Zara has translated its bid documents into French, amended and corrected its bid documents, and staff of the Autorité des marchés financiers is satisfied with the amended and corrected disclosure.
A copy of the Bureau's decision will be available on Visible Gold Mines' website.
About Visible Gold Mines
Visible Gold Mines Inc. is a dynamic company aggressively searching for the next important gold deposit in northwestern Québec, an area consistently ranked as one of the world's best jurisdictions for mining and exploration.
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SOURCE: Visible Gold Mines Inc.
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