www.bullionmm.com
Bullion Monarch Mining Inc. is a natural resource company that acquires mining properties to explore and develop. Bullion’s goal is to see the properties produce through joint ventures, leases, or sales. Bullion Monarch has recently undergone a reorganization and is now known as Bullion Monarch Mining, Inc. The company’s new trading symbol is BULM. Bullion believes it has excellent mining properties in Northern Nevada and throughout the Western United States. Newmont’s new, large Leeville underground mine and he East Ore Body Mine are currently producing royalty payments to Bullion. The company also acquired a 60% interest in EnShale, Inc. in 2005 (now 80%) in order to profit from the growing demand for oil by mining and processing oil shale into oil products. The Company currently has under lease 4,650 acres of oil shale property in the mahogany zone.
Bullion Monarch rejects $43m takeover offer from Eurasian Minerals
Bullion Monarch Mining (BULM.OB) said Thursday that it has received, and promptly rejected, an unsolicited takeover offer from junior explorer Eurasian Minerals (EMX.V), valuing the company at around $42.6 million, based on its current number of approximately 38.4 million shares.
Eurasian initially offered 0.44 shares of its company for every one share of Bullion stock in early August, which at the time equated to $0.80 per share. Currently, the offer, which was re-iterated in mid-September, stands at $1.11 per share due to share price fluctuations, representing a 71% premium to yesterday's closing price of $0.65.
Bullion, however, has rejected the proposal, as the company's board decided the deal was not in the best interest of its shareholders. The company did seem open to future offers though, saying it would provide updates on any new developments "if and when it has entered into a definitive agreement".
The takeover target is a gold-focused royalty company with additional interests in oil-shale technology. The company is continually looking to create new royalties or participating interests through the financing of mine development or exploration, or to acquire companies that hold royalties.
The majority of its current revenues are derived from a royalty claim block located in Northeastern Nevada’s Carlin Trend. Bullion Monarch also has an interest in various mineral assets in North and South America in exploration and development stages.
Bullion's royalty portfolio generates high-margin free cash flow with lower exposure to operating and capital costs than operating companies. The company has recently been on the prowl for M&A oppportunities, as it looks to take advantage of its royalty cash flow position.
Eurasian Minerals, which is headed by former Newmont Mining executives and senior geologists, is aggressively looking to add properties to its portfolio. The company has precious and base metals exploration programs in some of the world's most promising, yet under-explored regions, such as Turkey, Europe, the Kyrgyz Republic, Austral - East Asia, United States, and Haiti. The company's share price rallied from around $2.00 in early August to $2.71 at present.
