The two independent proxy firms have recommended that shareholders in Continental Gold vote in favour of Chinese gold major Zijin Mining’s acquisition of the company.
Zijin is offering C$5.50 a share in cash by way of a statutory plan of arrangement to secure Continental’s flagship Buritica gold project, in Colombia.
Institutional Shareholder Services (ISS) and Glass Lewis & Co referred to the strategic rationale for the Zijin transaction, the significant premium, and favourable market reaction as factors supporting their recommendations.
Shareholders would meet on January 28 in Toronto to consider the transaction.
Continental traded at C$5.42 a share on Tuesday.