Visby Management, an international mine operator, has stepped forward with two distinct offers aimed at acquiring Los Cerros Limited's (LCL) Andes and Quinchia mining assets in Colombia. This move directly challenges the existing sale agreement between LCL and Tiger Gold Corporation, presenting shareholders with alternative paths that could potentially offer greater financial and strategic benefits.
The first proposal, Offer A, is a straightforward all-cash deal valued at $6,000,000 AUD, payable within 12 months. This offer allows LCL to retain a 1% net smelter royalty (NSR) on the projects and maintain ownership of the assets until the full payment is completed. Offer B, on the other hand, introduces a more complex structure with an initial $2,000,000 AUD payment upon signing. A unique clause in Offer B requires Visby to achieve a public listing on a Canadian stock exchange by December 31, 2025. Failure to meet this condition would result in LCL keeping both the initial payment and the assets.
Visby Management highlights the advantages of their proposals, including the assurance of full transaction financing and their proven expertise in advancing mining projects in challenging environments. They argue that their offers not only provide LCL with immediate investment capital but also ensure continued future benefits through retained royalty interests. These proposals emerge at a pivotal time, as LCL shareholders prepare to vote on the existing agreement with Tiger Gold Corporation on February 17, 2025. Visby is actively urging shareholders to consider their offers as superior alternatives, emphasizing the flexibility, substantial upfront payments, and potential for additional future compensation.
Offer B, in particular, stands out by offering Visby the option to completely buy out the projects for $9,000,000 AUD, eliminating the public listing requirement. With the offers valid for 30 days or until necessary approvals are secured, LCL shareholders are presented with a timely opportunity to reassess their options. The Visby proposals not only challenge the status quo but also underscore the dynamic nature of mining asset transactions, where strategic alternatives can emerge to potentially unlock greater value for stakeholders.
