Management at Visby presents an outstanding offer to LCL Resources, urging shareholders to reject the proposal from Tiger Gold in the upcoming vote.
In a series of events unfolding since February 2025, Visby Management LLC has been locked in a competitive bid for the Colombian assets of Los Cerros Limited (LCL).
On February 11, Visby made two binding offers to LCL for the purchase of its Andes and Quinchia assets in Colombia. However, at the February 17 shareholder meeting, Tiger Gold Corporation's (TGC) offer was rejected by shareholders with 84% of votes against.
On April 30, Visby upped the ante with a superior offer of AUD$12.5m in cash payment plus 1% Net Smelter Return (NSR). This was followed by another offer on May 7, increasing the purchase price to AUD$15m, with an upfront payment of AUD$7.5m and AUD$7.5m on first gold pour, along with a 1% NSR.
In contrast, TGC's offer, improved on May 7, secures a $1 million AUD option on the properties with no further commitment to LCL and a next option payment to be made only after 8 months, contingent on TGC's continued interest. Tiger Gold Corporation offered less up-front cash compared to Visby's offer.
Despite Visby's superior offers, LCL's board has refused to consider them, citing a binding agreement with TGC. LCL's board has, however, recommended the approval by its shareholders of the latest TGC option terms.
Visby, with a track record of developing mining assets in Colombia, encourages LCL shareholders to vote against the TGC offer and to instruct management and board to engage with Visby on completing the sale of its Colombian assets as soon as possible on the terms of Visby's offer.
It is important to note that acceptance of any offer for LCL's Colombian assets is subject to approval from shareholders. The current standoff between Visby and TGC continues, with the future of LCL's Colombian assets hanging in the balance.
