Linear Gold to spin off metals firm, giving shareholders assets
By The Canadian Press
thechronicleherald.ca
HALIFAX, NOVA SCOTIA | Wednesday April 26, 2006
"Linear Gold Corp. (TSX:LRR) has finalized a plan to spin off its non-gold assets into a new publicly listed company to be known as Linear Metals Corp.
Linear Metals, to be listed on the TSX Venture Exchange, will hold the Cobre Grande, La Morena and Tierra Blanca properties in Mexico and two northwestern Ontario plays, the Seymour Lake tantalum-beryllium-lithium property and the Kilometre 61 copper-molybdenum joint venture with Falconbridge Ltd. (TSX:FAL.LV).
Linear Metals "plans to explore and advance its initial portfolio of properties while aggressively pursuing non-gold assets with an initial focus on Mexico," Monday’s announcement said.
Linear Metals expects to file a preliminary prospectus within a week, under which Linear Gold would transfer its 100 per cent interest in Linear Metals to its shareholders on May 30.
The contemplated distribution would see each Linear Gold share receive 0.8 share of Linear Metals plus one-10th of a warrant, with each warrant entitling the holder to buy an additional share for 12 cents.
A total of 17.2 million shares and 2.1 million warrants are expected to be distributed.
Linear Metals also plans a private placement to its managers of five million shares at 15 cents each for proceeds of $750,000.
Linear Gold CEO Wade Dawe said the spinoff "will allow the value of Linear Gold’s non-gold properties to be recognized by current Linear Gold shareholders." |
