Redaurum shareholders approve takeover

Shareholders have approved a revised agreement for a business combination between Redaurum (RRK-T) and a private company.

The revised merger agreement — effectively a reverse takeover of Redaurum — will see a share consolidation and an issue of new shares that will dilute the interests of existing Redaurum shareholders to about 5%. A wholly owned subsidiary of Redaurum takes over the private company, Remick Investments.

Remick brings three mining assets to the table: two in South Africa and one in Angola. The Red River placer-sands project in Northern Province has a resource of 104 million tonnes grading 8% TiO2, and Remick subsidiary Gravelotte Mines has a small gold mine in Gauteng Province. The Angolan asset is the Chipindo property, which Remick is exploring for gold.

Remick is also issuing shares before the merger, in order to bring in US$25 million in cash.

Redaurum shareholders, who had already approved a change of name to Salene Corporation and a continuation of the company’s charter in the Yukon, agreed to a 40-to-1 share exchange. The deal is expected to be complete by the end of April.