Inter-Citic Rejects Unsolicited Proposal From Chinese Mining Company
TORONTO, ONTARIO -- (Marketwire) -- 10/06/11 -- Mark Frederick, Chairman of the Board of Inter-Citic Minerals Inc. (TSX: ICI) ('Inter-Citic' or 'the Company'), reports that the Company has rejected an unsolicited preliminary proposal from a large Chinese mining company to acquire all of the outstanding shares of the Company ('the Proposal'). The Proposal was rejected by a Special Committee of the Inter-Citic Board after consultation with its independent financial advisors and legal counsel.
The Proposal, from a company that to the best of Inter-Citic's knowledge is neither an insider nor shareholder of the Company, included an indicative price of between $1.20 and $1.70 per share for Inter-Citic.
In considering the Proposal, the Special Committee determined that the indicative price significantly undervalues Inter-Citic and its prospects, and is therefore not in the best interests of shareholders.
Mr. Frederick said, 'The Dachang gold project is a great exploration success story that, in spite of currently challenging global markets and very recent and unusual trading volumes, will continue to be recognized as a gold asset of very significant value in a market where the demand for gold and quality gold projects has been increasing substantially. With $22 million in the bank, the Company is well funded to further advance and expand one of China's largest undeveloped gold resources.'
The Company is in a strong position both financially and operationally. The Board, with the assistance of its independent financial advisor and legal counsel, will continue to evaluate expressions of interest in the normal course as well as review the Company's strategy, capital structure and financing alternatives as the Company finalizes development strategies for the Dachang Main Zone. The Company is making this announcement on a voluntary basis and will determine the necessity of any similar future announcements as circumstances dictate.
On Behalf of the Board:
Mark R. Frederick, President & CEO
ABOUT INTER-CITIC:
Toronto-based Inter-Citic Minerals Inc. is an exploration and development company advancing its Dachang Gold Project in the People's Republic of China. Inter-Citic is listed on the TSX under the symbol ICI. Inter-Citic's website is www.inter-citic.com.
Investors are encouraged to review 'Risk Factors' associated with the Dachang project as outlined in the Company's 2010 Financial Statements and Annual Information Form, along with updates, available on the SEDAR website at www.sedar.com. The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading 'Risk Factors' in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Contacts:
Inter-Citic Minerals Inc.
Stephen Lautens
Vice President, Corporate Communications
(905) 479-5072 x 227
stephen@inter-citic.com
