Onitap negotiates reverse takeover with Red Oak

An agreement-in-principle has been reached for a reverse takeover of Onitap Resources (TSE) by private company Red Oak Resources of Calgary, Onitap reports.

Onitap plans, subject to shareholder and regulatory approval, to transfer its mining properties into a wholly owned subsidiary and re-organize its share capital into new common shares and non-voting shares.

Onitap will then issue 17 million common shares to Red Oak shareholders in exchange for Red Oak shares. Red Oak, which is negotiating to acquire oil and gas properties, will become a wholly owned subsidiary of Onitap, with Red Oak shareholders owning about 90% of Onitap’s voting shares.

The reverse takeover will see Onitap renamed Red Oak Resources Inc. and the relocation of its offices to Calgary from Toronto.