NGEx Resources (NGQ-V) Aug 11, '16 is pleased to announce that its shareholders (the "NGEx Shareholders") and optionholders, (the "NGEx Optionholders, and together, the "NGEx Securityholders") have approved the previously announced proposed spin-out of the Company's wholly owned Filo del Sol property (the "Filo del Sol Project") into a wholly owned subsidiary of NGEx, Filo Mining Corp. ("Filo Mining") at the special meeting of NGEx Securityholders held on August 11, 2016 in Vancouver. At the special meeting, a special resolution approving the transaction was approved by 99.9% of the votes cast at the meeting in person or by proxy by NGEx Securityholders, voting together as a single class. In addition, NGEx Shareholders have voted 99.9% (in person or by proxy) in favour to approve the stock option plan of Filo Mining.
The proposed spin-out transaction, which will be effected by a Plan of Arrangement under the Canada Business Corporations Act (the "Arrangement"), is expected to become effective on or about August 16, 2016, following receipt of final court and regulatory approvals. The Court hearing for the final order to approve the Arrangement is scheduled to take place on August 15, 2016.
Pursuant to the Arrangement, NGEx will distribute 100% of the common shares of Filo Mining (the "Filo Common Shares") it receives under the Arrangement to NGEx Shareholders on a pro rata basis, such that NGEx Shareholders will receive one Filo Common Share for every four common shares of NGEx (the "NGEx Common Shares") held as of the Record Date (as defined below).
Subject to completion of the Arrangement, NGEx Shareholders of record as of August 23, 2016 (the "Record Date") will be entitled to receive Filo Common Shares in respect of the NGEx Common Shares they hold. No additional action is required by NGEx Shareholders in order to receive Filo Mining Common Shares, and NGEx Shareholders will retain any certificates or direct registration statements representing their NGEx Common Shares. Subject to completion of the Arrangement and confirmation from Toronto Stock Exchange ("TSX"), it is currently anticipated that the NGEx Common Shares will begin trading on an ex-distribution basis on the TSX on August 19, 2016, two trading days before the Record Date, meaning that on and after such date, purchasers of NGEx Common Shares will no longer have an attaching right to receive Filo Common Shares in accordance with the Arrangement. Similarly, it is anticipated that the NGEx Common Shares will begin trading on an ex-distribution basis on the Nasdaq Stockholm Exchange ("OMX") on August 22, 2016, one trading day before the Record Date.
The Arrangement
The Arrangement will include a transfer of the Filo del Sol Project, along with $3 million in cash, to Filo Mining in exchange for the issuance of Filo Common Shares to NGEx, and NGEx will distribute all Filo Common Shares to the NGEx Shareholders. There will be no change in shareholders' holdings in NGEx as a result of the Arrangement. Upon completion of the Arrangement, Filo Mining will hold a 100% interest in the Filo del Sol Project and will focus on the advancement of this project. Over time it is expected that Filo Mining may add new exploration stage projects to its portfolio.
Additional details of the Arrangement are more fully described in the related Management Information Circular (the "Circular") which was mailed to all NGEx Securityholders of record as of July 8, 2016. The Circular is available under NGEx's profile on SEDAR at www.sedar.com, and is also available on the Company's web site at www.ngexresources.com.
The Arrangement is subject to TSX, regulatory and court approval.
The Company has applied for a listing of the shares of Filo Mining on the TSX Venture Exchange ("TSX-V") and Nasdaq First North Exchange under the trading symbol "FIL". Any such listing will be subject to Filo Mining fulfilling all of the requirements of the TSX-V and the Nasdaq First North Exchange.
NGEx expects the shares of Filo Mining to commence trading on the TSX-V and Nasdaq First North Exchange prior to the end of August, 2016 and will provide further guidance at a later date on the timing for any listing of the Filo Common Shares on the TSX-V and Nasdaq First North Exchange.
About NGEx
NGEx is a Canadian mineral exploration company with exploration projects in Chile and Argentina. The Company's shares are listed on the TSX and on Nasdaq Stockholm under the symbol "NGQ". The Company's focus is on advanced exploration stage copper-gold systems located on a contiguous land package that the Company holds in Chile's Region III and adjacent San Juan Province, Argentina. Los Helados is part of a joint venture in which the Company holds approximately a 60.74% interest and Pan Pacific Copper Co., Ltd. holds approximately a 39.26% interest. Josemaría is part of a joint venture in which the Company holds 60% and Japan Oil, Gas, and Metals National Corporation (JOGMEC) owns 40%. In addition to these more advanced projects, the Company holds a portfolio of 100% owned early stage exploration projects located in Chile and Argentina.
Additional Information
This information is information that NGEx is obliged to make public pursuant to the Swedish Securities Market Act and/or the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, on August 11, 2016 at 2:30 p.m. Pacific Time.
On behalf of the board
Wojtek Wodzicki, President and CEO
NGEx Resources Inc.
Sophia Shane
Corporate Development
(604) 689-7842
www.ngexresources.com |
