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November 3, 2012 12:08 am
Shareholders in Hambledon Mining, the Aim-quoted gold miner embroiled in legal disputes with Kazakhstan authorities, received some good news on Friday with the launch of a partial takeover offer for the company.
African Resources, backed by the Assaubayev family that previously were involved in the creation of Kazakhgold, launched a 2p-a-share offer for up to 60 per cent of Hambledon’s shares that was pitched at a two-thirds premium of the junior stock’s trading price of 1.2p ahead of the announcement.
The offer effectively values the company’s equity at £20m.
Shares in Hambledon, which traded as high as 8.5p at the beginning of last year, have slumped along with many smaller speculative gold mining juniors, as softening prices for the precious metal combined with higher production costs have dented sentiment towards larger gold producers.
Wider scepticism towards the potential of small gold explorers has been compounded in Hambledon’s case by a series of disputes with public authorities over leaks to dams and contamination of water.
Hambledon continues to dispute the scale of fines totalling $9.5m imposed by a regional court.
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