With 42.1 million shares currently issued,
Shareholders of Major General would receive shares in the yet-to-be-named new company on the basis of one share for every 3.5 restructured shares held. The proposed reorganization requires the approval of 75% of the votes cast at the annual general meeting, to be held in May.
Major General would retain a 9.9% equity position in the new company, along with a 2% royalty on future production.
The company’s diamond property holdings exceed 400,000 hectares on Victoria Island in Nunavut where more than a dozen targets are ready to drill, subject to funding. In addition, the junior holds a 24% interest in the Misty Lake joint venture, immediately south of the Gahcho Kue (Kennady Lake) in the Northwest Territories, a joint venture between De Beers and Mountain Province Diamonds.
The new company would be financed by way of a prospectus offering through Haywood Securities of 3 million units for proceeds of up to $1.5 million. Each unit will consist of one new diamond share and a half warrant.
The restructured Major General would retain all its base metal and gold properties, including its South Voisey’s Bay interests and Green Bay property in Newfoundland.
Major General will complete a $1-million financing once the shares in the company have been rolled back. The private placement will be priced at 45 for a post-consolidated share and a warrant that entitles the holder to buy an additional share at 55 in the first year and 65 in the second. A 7.5% finder’s fee will be payable to Rick Rule’s Global Resource Investments.
Be the first to comment on "Major General plans diamond spinoff"