Prospectors Alliance Corporation - Shareholders Approve Amalgamation
Toronto, Ontario - Tuesday, October 17, 2000, 3:53 PM EDT
Prospectors Alliance Corporation (YRP-CDNX Toronto 21,116,121
outstanding shares) today announced that the final technical step
in its reorganization involving Prospectors and its merger
partners, International Larder Minerals Inc. and Explorers
Alliance Corporation, was completed on Friday, October 13, 2000.
Shareholders of Prospectors (which will continue under the name
Explorers Alliance Corporation) who were shareholders of record
on October 13, 2000 will be entitled to receive under the terms
of the reorganization a warrant to purchase 1/2 of a reorganized
share of Explorers Alliance Corporation for a period of six
months following October 13, 2000 at an exercise price of $0.65
per share.
Shareholders are reminded that the relative exchange ratios for
the transactions were based on the underlying independently
appraised net asset values of the companies and conversion of
debt into equity at the appraised value. After an effective 1 for
4 share consolidation, the new amalgamated company will have
approximately 20.4 million common shares outstanding on
completion of the transaction with an appraised value of
approximately $0.68 per share. The Company expects that its new
transfer agent, Equity Transfer Services Inc., will mail out
entitlement and transmittal letters for exchange into the new
Explorers shares very shortly. The new amalgamated company has
been renamed Explorers Alliance Corporation ("Explorers") and
will apply for continuation of trading on CDNX. The Company is in
the process of finalizing its previously announced $3.1 million
convertible debenture financing with Cambridge Capital Group,
Inc.
Prospectors re-iterated its announcement of October 12, 2000 to
the effect that, until the formalities related to its continuance
of the listing on CDNX as Explorers Alliance Corporation,
Prospectors' shares will continue to trade on a pre-consolidated
basis. The purpose of this announcement is to clarify that
persons who become shareholders of record of Prospectors after
October 13, 2000 will not be entitled to receive the warrants
referred to above. The Company would therefore expect that its
shares would trade at a value reflecting its underlying value
after completion of the amalgamations but on a pre-consolidated
basis and without any attributed value for warrants.
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For further information, please contact:
Jean-Claude Bonhomme, President and CEO or Garry R. Stein, Vice-
President, Chief Financial Officer and Secretary, Explorers
Alliance Corporation at (416) 360-5333
Prospectors Alliance Corporation
56 Temperance Street, 3rd Floor
Toronto, Ontario M5H 3V5
International Larder Minerals Inc.
121 Richmond Street West, Suite 804
Toronto, Ontario M5H 2K1 |
