Allied Nevada wins court OK of $17.5 million sale to Clover Nevada

By Kali Hays

New York, June 18 – Allied Nevada Gold Corp. received approval of a $17.5 million sale of its exploration properties and related assets to stalking horse bidder Clover Nevada LLC on Thursday under an order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Allied said that it received no other qualified bids by a June 12 deadline, so an auction for the assets was canceled.

The purchase price under the stalking horse agreement will be comprised of a $17.5 million cash component and up to the $65,000 the selling Allied Gold debtors posted for any seller security that is transferred to the buyer.

If Clover Nevada was not the high bidder, it would have been entitled to a $350,000 breakup fee and reimbursement of up to $100,000 of its sale-related expenses, under the stalking horse agreement.

Allied Nevada is a Reno, Nev., gold and silver miner that filed for bankruptcy on March 10. Its Chapter 11 case number is 15-10503.

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