TORONTO (miningweekly.com) – Paris- and Toronto-listed royalty firm Euro Ressources has recommended that shareholders do not accept an unsolicited takeover offer from Canada's Iamgold, the firm said on Thursday.

Iamgold's offer of €1,20 a share opened for acceptance in France and Canada on Monday.

However, after considering the offer, Euro's directors said that they would not sell their own shares in the company – about 8,9% - to Iamgold, and recommended that other shareholders follow suit.

“Based on all the information available to Euro and its advisers, the offer price of €1,20 per share represents a significant discount to the value of Euro's shares, as established by the various valuation criteria considered,” the firm said.

France-based Euro has a royalty on Iamgold's Rosebel mine, in Suriname, and the miner announced in August that it would launch a takeover bid, in a move to lower cash costs at the operation.

The firm said at the time that costs could be reduced by some $50/oz if the takeover was successful.

Euro has a participation right royalty on production from the Rosebel mine that entitles it to payments of 10% of the gold price above $300/oz for production from soft rock and above $350/oz for production from hard rock.

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