TORONTO (miningweekly.com) – Toronto-based Khan Resources has hired Haywood Securities as financial adviser in connection with a takeover offer from Atomredmetzolo (ARMZ) of Russia, the firm announced on Wednesday.

Haywood will also advise on “any available alternatives that may enhance value for Khan shareholders”, the company said.

On Friday, ARMZ announced its intention to make the unsolicited offer for Khan, and filed the offer on Monday.

The Russian uranium-miner is offering C$0,65 a share, which is a 48% premium on the closing price on Thursday, the day before it announced its intentions, and a 103% premium over the 20-day volume-weighted average price.

"Consistent with its duties, the special committee of independent directors will carefully review and evaluate the formal offer made by ARMZ and its terms and conditions, along with any value-enhancing strategic alternatives that may be available, and will recommend a course of action to the Khan Board that is in the best interests of Khan and its shareholders", said president and CEO Martin Quick.

"We believe it is in the best interests of all shareholders to wait for the special committee to go through their process before taking any action on the ARMZ offer,” he added.

Khan holds a 58% interest in Central Asian Uranium Company (CAUC), which holds a mining licence on the Dornod uranium project in Mongolia. ARMZ subsidiary Priargunsky owns 21% of CAUC and Mongolian government-owned MonAtom holds the balance.

Khan also has a 100% interest in an adjacent exploration licence area.

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