TORONTO (miningweekly.com) – The strategic review Jaguar Mining, which produces gold in Brazil, is carrying out that may end in the company being sold is “going along very smoothly”, chairperson Gary German said on Monday.

“We’re not disappointed with the way it has been proceeding,” he said in an interview.

The TSX- and NYSE-listed company in November said it embarked on a strategic review after having received an unsolicited potential buyout approach, after media reports said Chinese State-owned Shandong Gold Group had offered to buy the miner for $1-billion.

In December, Jaguar announced the sudden departure of CEO Daniel Titcomb, which some fund managers believed was linked to the takeover offer.

German declined to comment on Titcomb’s exit.

In January, Jaguar, based in Concord, New Hampshire, said it had signed confidentiality agreements with “several parties”, after having hired JP Morgan to assist in the review process.

German declined to say how many companies were conducting due diligence, or how long the process might take.

“I can’t call the end of it,” he said, adding that it was a process that involved thorough due diligence.

The company on January 31 said it produced 155 764 oz of gold at its Brazilian mines in 2011, up 13% on the number for the prior year.

Production for the fourth quarter came in at 33 397 oz – a 17% reduction on the 40 660 oz it mined in the preceeding quarter.

The company has been implementing a turnaround plan at its Turmalina, Caeté and Paciência operations, all located in Minas Gerais state.

Jaguar posted a $51-million loss for the third quarter. On an adjusted basis, it made a $7.4-million profit.

Reuters reported in November that Shandong Gold was offering Jaguar $9.30 a share – a 73% premium to its closing price the previous day.

The stock surged to as high as C$8.36 on the news, but has since eased to around C$6.51 a share, the price at which it closed in Toronto on Monday.
 

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