At a special meeting scheduled for March 22, shareholders of
Shareholders had approved a business combination with the South African investment firm last fall. However, the TSE has since ruled that amendments to the original proposal were “materially different” and therefore require another vote by shareholders.
The amended transaction calls for Redaurum shares to be consolidated on a 1-for-40 basis. It will also complete the financing by Remick of at least US$21 million.
Current shareholders of Redaurum will own not less than 4.9% of the outstanding shares of the surviving entity, to be known as Salene Corp. It will hold mining assets in South Africa, Uganda and the U.S.
Redaurum has separate agreements to sell shares of its two diamond subsidiaries. One owns the short-lived Kelsey Lake mine in Colorado, while the other holds Redaurum’s 50% interest in the dormant River Ranch mine in Zimbabwe. Both agreements are expected to close shortly.
Among Remick’s assets is the Red River deposit in South Africa, which contains titanium, vanadium, apatite and garnets, with a total estimated resource of 104 million tonnes at a titanium dioxide level of 8%. The company also owns a gold mining operation in South Africa (valued at US$15.8 million) and a gold exploration project in Angola.
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