1. | Name and address of the offeror: | |
Fronteer Development Group Inc. (Fronteer) Suite 1650, 1055 West Hastings Street Vancouver, British Columbia V6E 2E9 |
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2. | Designation and number or principal amount of securities and the offerors securityholding percentage in the class of securities of which the offeror acquired ownership or control in the transaction or occurrence giving rise to the obligation to file this report and whether it was ownership or control that was acquired in those circumstances: | |
Not applicable. | ||
3. | The designation and number or principal amount of securities and the offerors securityholding percentage in the class of securities immediately after the transaction or occurrence giving rise to obligation to file the report: | |
Fronteer beneficially owns and controls 30,947,336 common shares of Aurora Energy Resources Inc. (Aurora), representing an aggregate of approximately 42.2% of the issued and outstanding common shares of Aurora (the Common Shares). | ||
4. | The designation and number or principal amount of securities and the percentage of outstanding securities of the class of securities referred to in paragraph 3 over which: |
(a) | the offeror, either alone or together with any joint actors, has ownership and control; | ||
All securities identified in paragraph 3 above are beneficially owned and controlled by Fronteer. | |||
(b) | the offeror, either alone or together with any joint actors, has ownership but control is held by other persons or companies other than the offeror or any joint actor; and | ||
Not applicable. | |||
(c) | the offeror, either alone or together with any joint actors, has exclusive or shared control but does not have ownership; | ||
Not applicable. |
5. | The name of the market in which the transaction or occurrence that gave rise to this report took place: | |
Not applicable. | ||
6. | The value, in Canadian dollars, of any consideration offered per security if the offeror acquired ownership of a security in the transaction or occurrence giving rise to the obligation to file this report: | |
See paragraph 7 below. | ||
7. | The purpose of the offeror and any joint actors in effecting the transaction or occurrence that gave rise to this report, including any future intention to acquire ownership of, or control over, additional securities of the reporting issuer: | |
On January 23, 2009, Fronteer announced that it formally commenced an offer to acquire all of the issued and outstanding Common Shares of Aurora that Fronteer does not already own, on the basis of 0.825 of a Fronteer common share for each Common Share (the Offer). The Offer will be open for acceptance until 8:00 p.m. (Toronto time) on March 2, 2009, unless the Offer is extended or withdrawn. | ||
If each of the conditions of the Offer is satisfied or waived and Fronteer takes up and pays for Common Shares deposited under the Offer, Fronteer intends to enter into one or more transactions to enable Fronteer or an affiliate of Fronteer to acquire all remaining Common Shares not acquired pursuant to the Offer. There is no assurance that such a transaction will be completed, in particular if Fronteer acquires less than 662/3% of the outstanding Common Shares on a fully diluted basis under the Offer. | ||
The foregoing description of the Offer does not purport to be complete and is qualified in its entirety by reference to the full text of the Fronteer Offer and Circular dated as of the date hereof, filed with the Canadian and United States securities regulatory authorities and available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Reference is also made to the news release of Fronteer issued on January 23, 2009, a copy of which is attached hereto as Schedule A and incorporated by reference herein. | ||
8. | The general nature and the material terms of any agreement, other than lending arrangements, with respect to securities of the reporting issuer entered into by the offeror, or any joint actor, and the issuer of the securities or any other entity in connection with the transaction or occurrence giving rise to this report, including agreements with respect to the acquisition, holding, disposition or voting of any of the securities: | |
Pursuant to lock-up agreements entered into with each of Amber Capital Investment Management, Eastbourne Capital Management L.L.C. and MacKenzie Financial Corporation, each such shareholder has agreed to deposit under the Offer and not withdraw, subject to certain exceptions, Common Shares representing in the aggregate 19,234,700 Common Shares or approximately 26% of the issued and outstanding |
Common Shares. A complete copy of each of the lock-up agreements has been filed on SEDAR and on EDGAR and is available at www.sedar.com and www.sec.gov. | ||
9. | The names of any joint actors in connection with the disclosure required by this report: | |
Fronteer expressly disclaims that any person has acted jointly or in concert with Fronteer in connection with the Offer described in this report. | ||
10. | In the case of a transaction or occurrence that did not take place on a stock exchange or other market that represents a published market for the securities, including an issuance from treasury, the nature and value, in Canadian dollars of the consideration paid by the offeror: | |
Not applicable. | ||
11. | If applicable, a description of any change in any material fact set out in a previous report by the entity under the early warning requirements or Part 4 of National Instrument 62-103 in respect of the reporting issuers securities: | |
Not applicable. | ||
12. | If applicable, a description of the exemption from securities legislation being relied on by the offeror and the facts supporting that reliance: | |
Not applicable. | ||
DATED this 23rd day of January, 2009. |
FRONTEER DEVELOPMENT GROUP INC. |
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(signed) Sean Tetzlaff | ||||
Sean Tetzlaff | ||||
Chief Financial Officer and Corporate Secretary |
NEWS RELEASE 09-02 | JANUARY 23, 2009 |
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