GCR calls EGM to determine Heron Resource & HQ Mining Offers

Golden Cross Resources (ASX: GCR) shareholders to determine Heron Resources (ASX:HRR) and HQ Mining offers at an EGM

The board of Golden Cross Resources Limited met today to consider and respond to the offer from Heron Resources Limited (“Heron”) received on Monday 16 December 2013 and the offer from HQ Mining Resources Holding Limited (“HQ Mining”) received this morning.

The board by a 3:2 majority resolved to reject the offer from Heron. Mr Li Yan (as alternate director for Mr Li Xiaoming), Ms Jingmin Qian, and Ms Xun (Suzanne) Qiu voted against accepting the Heron offer. Messrs Steve Gemell, the Chairman, and Kim Stanton-Cook, the Managing Director voted in favour of accepting the offer. Mr Kerry McHugh, a board consultant who did not attend the meeting and would have had no formal vote at the meeting in any case, informed the board beforehand, through the Managing Director, that he supported accepting the offer.

In considering the HQ Mining offer, the board agreed that Option 1: Placement was not in the best interests of all shareholders and it was removed from further consideration.

The board by a 2:1 majority resolved to reject the offer (Option 2: Underwritten rights issue) from HQ Mining. Messrs Gemell and Stanton-Cook voted against the HQ Mining offer. Mr Li Yan and Ms Qian stated that Ms Qian is independent of HQ Mining and Ms Qian voted in favour of accepting the offer. Ms Qiu and Mr Li Yan were not entitled to vote.

The Chairman exercised his right as a director to call for an Extraordinary General Meeting (EGM) of shareholders to decide whether to accept or reject the offers. Heron and HQ Mining have both agreed to extend the timing of their offers to the date of the EGM.

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