Shareholders of Bre-X Minerals (TSE) recently approved a shareholders’ rights plan, a stock split and a resolution to spin out the Sangihe and Sable properties in Indonesia.
Shareholders approved the resolutions at a special meeting in Calgary.
Bre-X’s common shares will begin trading on the split basis on May 22.
Shareholders will receive nine new shares for each share held, representing the additional shares to which they are entitled.
The shareholders’ rights plan was approved by vote of disinterested shareholders, and approval was granted to transfer the Sangihe and Sable copper-gold properties to a wholly owned subsidiary (subject to regulatory approval).
Meanwhile, Bresea Resources (ME), majority shareholder of Bre-X, completed a $29.4-million, private-placement financing. The proceeds will be used to fund Bresea’s ongoing exploration programs in Indonesia, and for working capital.
Bresea owns 23% of Bre-X, whose key asset is the Busang gold project in Indonesia. Later this year, Bre-X plans to sell a 25% stake in the multi-million-ounce gold deposit to a major company that would act as operator.
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