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Wednesday, 31 October 2012
Globex Mining updates on Chibougamau Independent Mines spin out
Globex Mining Enterprises (TSE:GMX)(OTCQX:GLBXF) provided Wednesday an update on its proposed spin out of its subisidary Chibougamau Independent Mines (CIM) to its shareholders.
The company's shareholders approved the arrangement at a special meeting on October 19, with an affirmative vote of 99.95 per cent.
Following this, Globex's motion for a final order in connection with the transaction was continued to a future date by the Quebec Superior Court.
The company said the motion will be heard after it obtains an advance income tax ruling from the CRA confirming its arrangement will be treated as a tax-deferred "butterfly" reorganization, as well as conditional approval for the listing of its subsidiary's shares on the TSX Venture Exchange.
The hearing of the motion is also contigent on other items. Globex noted that it expects to receive the income tax ruling and conditional listing approval shortly.
The company said it will issue a release announcing the hearing date for the final order when it is decided - with the date expected to be in mid-November. A delay to the spin out is not anticipated.
Globex will transfer its interest in 10 mineral resource properties - known as the Chibougamau Mining Camp - which are subject to a three-per-cent gross metal royalty - together with cash and certain securities to CIM.
Globex's shareholders will receive one common share of CIM for each share of Globex held on the effective date of the arrangement.
Last week, Globex Mining announced two private placement agreements, one for itself and one for its subsidiary, Chibougamau Independent Mines.
The total amount raised from Globex's offering will be $4.25 million, which will be used for exploration on its properties in Quebec and Ontario, as well as for potential land acquisitions and working capital.