Members of a 66-year-old syndicate will be reinstated as shareholders of Teddy Bear Valley Mines (CDN) following approval of the company’s Plan of Arrangement by the Ontario Court of Justice.
The plan reverses a 1984 reorganization of the company that disenfranchised shareholders of the Teddy Bear Valley Syndicate, an investor group formed in 1927 to finance gold exploration. The syndicate will now be dissolved and the 135 shareholders issued a total of 1.23 million shares, or about 29%, of the junior company.
Teddy Bear has a 15.3% interest in the Holloway gold project in northeastern Ontario, where a $12-million underground exploration program is under way. Its partners on the project are Hemlo Gold Mines (TSE) and Freewest Resources (TSE).
Teddy Bear, whose total of issued and outstanding shares will be reduced by 48,231 to 4.233 million by the plan, intends to call a shareholders meeting shortly.
In his ruling, Judge James Farley said there is nothing to prevent a New York-based group of shareholders from selling their 42% stake in the syndicate as a block, should they wish to do so. Other major shareholders of Teddy Bear include Canadex Resources, with a 19% stake, and Hemlo Gold, with a 10% interest.
Teddy Bear trades between $1.50-2.50.
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