Rio Tinto Prevails in Bidding for Hathor

A winter scene at Hathor Exploration's Roughrider drill camp in the Athabasca Basin of northern Saskatchewan.
(Photo courtesy of Hathor Exploration)
From late August through mid-November 2011, Rio Tinto and Cameco engaged in competitive bidding for Hathor Exploration, a Canadian uranium exploration company with uranium properties in the Athabasca Basin of northern Saskatchewan. Rio Tinto prevailed with an all-cash offer made on November 17 to acquire all outstanding Hathor common shares for C$4.70/share, valuing Hathor at about C$654 million. On November 28, Cameco announced it would not increase or extend its November 11 offer of C$4.50/Hathor share. Rio Tinto followed the Cameco announcement with an announcement of its own, urging Hathor shareholders to promptly tender their shares to its C$4.70/share offer.

Earlier, Rio Tinto had offered C$4.15/ share on October 19, and Cameco had offered C$3.75/share on August 26. On September 14, Hathor's board unanimous-ly recommended that its shareholders reject the initial Cameco offer because the offer had been made prior to Hathor's planned release of a preliminary economic assess-ment for its Roughrider uranium deposit.

As featured in Womp 2011 Vol 10 -