The decision of an Ontario Superior Court judge Tuesday granting an injunction restraining Rusoro Mining from its hostile takeover bid of Gold Reserve has prompted Rusoro to withdraw its bid.
The interlocutory injunction was granted by Superior Court Justice Peter Cumming following a motion by Gold Reserve on the basis that Rusoro allegedly had access to or benefitted from the use of confidential information concerning Gold Reserve as a result of Rusoro's relationship with Endeavour Financial International.
The court also issued an injunction restraining Endeavour from having any involvement with a hostile takeover bid for Gold Reserve, which had been a former Endeavour client. The court required that Rusoro, Endeavour and their agents return all the confidential information concerning Gold Reserve to the Spokane-based junior company and also anything produced from that confidential information.
Any Gold Reserve shareholders who have already tendered their shares to Rusoro will have their shares returned.
In a brief statement, Rusoro said it had withdrawn its offer for Gold Reserve as conditions of its offer can no longer be satisfied as a result of the decision issued today by the Ontario Superior Court of Justice. As a result, the hearing before the Ontario Securities Commission to consider cease trading Gold Reserve Inc.'s shareholders rights plan which was scheduled to take place February 12, 2009, will not proceed.
We are pleased that Rusoro has withdrawn its offer and appreciate the support of our shareholders throughout this process, Gold Reserve responded. As we have said, we have valuable assets and are committed to ensuring that our shareholders receive full value for their investment in Gold Reserve.
Rusoro initiated the Cdn$128 million (US$102 million) all share takeover bid last December in an attempt to take control of Gold Reserve's Las Brisas gold project in Venezuela, located next to Crystallex's Las Cristinas gold project. The administration of Venezuelan President Hugo Chavez has made little secret of the desire to acquire the projects and operate them in a joint venture with Rusoro and its Russian managers.
Previously Rusoro offered three of their shares for each Gold Reserve share.