Scion Capital Reports Confirmation That Bolivar Gold Has Overstated Venezuela Risk
January 06 2006 - 6:34PM
PR Newswire (US)
CUPERTINO, Calif., Jan. 6 /PRNewswire-FirstCall/ -- The government
of Venezuela has confirmed that the operations of Bolivar Gold
Corp. (TSX: BGC; BGC.TO) in that country are far more secure than
the company's management and board have claimed, Scion Capital, LLC
announced today. The Dow Jones bureau in Caracas reported today
that Mining Minister Victor Alvarez stated that Venezuela has
completed 75% of the review of mining operations in the country and
will provide an initial report this month. "The mining review has
left many foreign companies awaiting final word before continuing
their planned operations, but a few companies have received
operating permits in recent weeks," Dow Jones reported. "The
minister noted that those companies that received permits,
including Canada's Gold Reserve Inc. (GRZ) and Bolivar Gold Corp.
(BGC.T), are examples of viable projects that are in tune with the
state's new mining policies." Dow Jones further quoted the Mining
Minister as saying: "All those who follow the country's laws have
nothing to worry about." In defending the undervalued $3.00 per
share offer for Bolivar from Gold Fields Limited (NYSE:GFI),
Bolivar's management has repeatedly cited alleged risk to
operations in Venezuela. "Today's reporting of the Mining
Minister's comments confirms what Scion Capital's research had
identified long ago. Bolivar Gold received its final exploitation
permits for Choco 4 and Choco 10 in early December after gazetting
in early November, and it is in good standing with the government.
Never has this been more clear for shareholders," said Michael
Burry, President of Scion Capital. "Gold has rallied over the last
few months and closed today at $539.95 per ounce, the highest close
since 1981," he said. "While, for example, Gold Reserve investors
have benefited from a dramatically increased share price driven by
higher gold prices and by good news from Venezuela, Bolivar
investors' gains have been limited by the Board's rash, conflicted
acceptance of the artificially low Gold Fields offer. Shareholders
should vote to reject the deal at the special meeting on January
12." Dr. Burry further stated to Bolivar shareholders that, "Since
the plan of arrangement with Gold Fields was announced on November
21st, Bolivar Gold's stock price has essentially traded flat, near
Gold Fields' $3.00 offer, while Crystallex has seen its share price
rise 40% and Gold Reserve has seen its share price soar 81% over
that same period." About Scion Capital Based in Cupertino,
California, Scion Capital, LLC is an investment advisory firm
founded in 2000, with current assets under management in excess
US$750 million. Scion Capital seeks to make long-term investments
in companies it identifies as having value that has not yet been
recognized by the market. It employs a diversified investment
strategy across many public and private industries, markets and
investment opportunities. Scion Capital is Bolivar's largest
shareholder with holdings of 21,676,400 shares representing
approximately 19.14% of Bolivar's outstanding common shares. Scion
Capital's Dissident Circular is available at http://www.sedar.com/
and at http://www.scioncapital.com/. DATASOURCE: Scion Capital
CONTACT: investors, Steven A. Druskin Chief Legal Officer of Scion
Capital, LLC, +1-408-441-8400; or media, John Lute of Lute &
Company, +1-416-929-5883, for Scion Capital, LLC; or Mackenzie
Partners Inc., 1-800-322-2885, or +1-212-929-5500 Web site:
http://www.sedar.com/ Web site: http://www.scioncapital.com/
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