Coast Mountain Power Corp. has created an electronic and hard copy data room for potential bidders who might wish to compete with NovaGold Resources’ unsolicited bid to acquire the Canadian hydro developer’s outstanding shares.
Coast Mountain Power Corp.’s subsidiary Coast Mountain Hydro Corp. is developing the 115-MW Forrest Kerr hydroelectric project on the Iskut River in northwestern British Columbia. It also is developing the 60- to 70-MW More Creek and 55- to 60-MW Mclymont Creek hydro projects, both near Forrest Kerr.
Qualified bidders can obtain access to the data room through the company’s financial adviser, Capital West Partners, Attention: Andrew Kemper, 1250-885 W. Georgia St., Vancouver, BC V6C 3E8; (1) 604-718-6800; Fax: (1) 604-718-6820; E-mail: firstname.lastname@example.org.
Coast Mountain Power said its board is committed to maximizing the company’s value to shareholders and will look at the proposed NovaGold bid and any other potential bids that might arise from Capital West Partners’ solicitation of expressions of interest.
NovaGold, which says Forrest Kerr possesses significant development synergies with its Galore Creek copper-gold project, is preparing a formal takeover bid circular for distribution to Coast Mountain shareholders. It says holders of more than 32 percent of Coast Mountain’s outstanding shares, including four of Coast Mountain’s five directors, have entered binding agreements to tender their shares under the terms of the offer.
Shares of Coast Mountain would be exchanged for NovaGold shares based on the weighted average trading price of NovaGold shares and a value of C$2 (US$1.75) per Coast Mountain share. The transaction is valued at about C$40 million (US$35 million), NovaGold said.