IMI will merge with T.LMR, V.CMX. Is this good news or bad news for shareholders? any comments?
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: ICAN MINERALS LTD.
TSE SYMBOL: IMI
AND LAMINCO RESOURCES INC.
TSE SYMBOL: LMR
AND CANMEX MINERALS CORPORATION
VSE SYMBOL: CMX
AUGUST 21, 1997
Ican Minerals Ltd. Signs Letter of Intent for a Business
Combination With Laminco Resources Inc. and Canmex
Minerals Corporation
CALGARY, ALBERTA--LAMINCO RESOURCES INC. ("Laminco") (TSE:LMR),
ICAN MINERALS LTD. ("Ican") (TSE:IMI) and CANMEX MINERALS
CORPORATION ("Canmex") (VSE:CMX) are pleased to announce that they
have signed a letter of intent for a business combination of the
three companies. The business combination is subject to approval
of their respective boards and shareholders, appropriate
regulatory approval, to the conclusion of final due diligence of
each of the companies and to the execution of a formal agreement.
Under the proposed business combination, Laminco, Ican and Canmex
will form a new Toronto Stock Exchange listed company ("Newco")
with experienced management and a broad asset base in Mexico and
the United States. It is proposed that the shareholders of each of
Laminco, Ican and Canmex would receive 0.4 Newco share for each
fully diluted common share held in the respective companies. The
proposed transaction also provides for an equity financing of
CDN$5 million in order that Newco will have in excess of CDN$10
million in working capital.
Upon completion of the business combination, Newco will have an
extensive portfolio of precious and base metals exploration,
development and near term production projects, substantial
financial resources to accelerate development of existing proven
assets and the ability to seek growth opportunities by
acquisition. Combined near term annual production in excess of
150,000 ounces of gold and 16 million pounds of copper cathode are
under development on existing projects.
The three companies intend to proceed expeditiously to complete
the transaction.
LAMINCO RESOURCES INC.
Edwin Morrow, President
ICAN MINERALS LTD.
Archie J. Nesbitt, President
CANMEX MINERALS CORP.
Lukas H. Lundin, President
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