Gold producer and explorer, Bolnisi Gold (BSG) said on Tuesday its shareholders have approved a $1.1 billion takeover offer by silver producer, Coeur d'Alene Mines.
The takeover will make United States-based Coeur the world's largest silver producer and pave the way for its listing on the Australian Stock Exchange.
Announced back in May 2007, the lengthy and complex transaction might have one more hurdle in sight, despite the all clear from Bolnisi.
Coeur advised it might not have the necessary quorum of 50% of voting shares at its meeting scheduled earlier today in the US for a vote to go ahead and has proposed to adjourn the meeting until 7 December Idaho time to enable it to satisfy this requirement.
Under the terms of the offer, Coeur will acquire all of the Bolnisi's shares , and all of the shares in Palmarejo (a Bolnisi subsidiary) not owned by Bolnisi.
Bolnisi directors have unanimously recommended the proposed scheme.
"Your directors, in conjuction with the company's advisers have made a full evaluation of the scheme and concluded that it represents an attractive opportunity for Bolnisi shareholders," chairman Norman Seckold said.
Bolnisi shareholders will receive 0.682 Coeur shares, or CDIs representing Coeur shares and $0.004 in cash for each Bolnisi share they hold.
Bolnisi and Palmarejo currently own 100% of the Palmarejo Project which is located in the state of Chihuahua, Mexico.
It is one of the highest-quality primary silver projects in the world today, to which Coeur believes it can create significant additional value by leveraging its extensive exploration, development and underground and open mining expertise.
Still outstanding are the outcome of the Coeur and Palmarejo meetings, said Bolnisi.
Coeur owns and operates mines in Australia, North and South America, and is constructing new silver mine in Bolivia and a new gold mine in Alaska.
Coeur is listed on the Toronto Stock Exchange and New York Stock Exchange.
The spot price for silver is currently trading around US$14, having made strong gains in recent years. With many pundits expecting further gains in the years ahead, the listing of Coeur on the ASX will provide Australian investors with access to a quality silver producer.
Bolnisi Gold closed 7 cents up at $3.25.
