St. Elias Mines (CVE:SLI)
said Tuesday that it has received conditional approval from the TSX
Venture Exchange to spin out its British Columbia assets into Havilah
Mines.
Havilah Mines will be separately listed while St. Elias will focus on its assets in Peru.
The proposed transaction was approved by shareholders and B.C. authorities in November.
The
company said that in conjunction with its spin-out plan, Havilah has
arranged a $600,000 private placement consisting of 1.5 million
flow-through units at a price of $0.20 each and 3 million units at a
price of $0.10 each.
Each flow-through unit will consist of one
flow-through common share in Havilah and one warrant to acquire one
common share in Havilah for a period of 24 months following the closing
of the private placement at $0.30 per share during the first year and
$0.45 per share during the second year.
Each unit consists of
one common share in Havilah and one warrant to acquire one common share
in Havilah for a period of 24 months following the closing of the
private placement at a price of $0.30 per share during the first year
and $0.45 per share during the second year.
Once the proposed
spin-out is approved, St. Elias shareholders will receive one share of
Havilah for every 20 St. Elias shares they own. There will be no change
in shareholders' holdings in St. Elias as a result of the spin-out.
The
spin-out is subject to the final approval from the TSX Exchange and the
financing of Havilah and St. Elias will release further news of the
effective date of the proposed transaction.
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