Where does this leave Asamera shareholders?

With 25.1 million Asamera shares outstanding, the deal would be worth about 0.4 Corona shares per Asamera share, or at current prices about $4 per share. With a trading range of $8.88 just after the original issue in 1987 to a low of $2.75 in 1989, and over 90% of the trades taking place above $4, most of the holders of the 8% minority are not likely to be happy.

The deal is subject to a due diligence study by Corona which is expected to be completed within the next few weeks. At that point, if the respective boards of the two companies (some of the members of which are common) approve the agreement, a shareholder vote will be required. However, unlike a straight takeover attempt, a majority vote of the minority shareholders will not be required. Asamera Minerals is 92% owned by Asamera Inc. which in turn is 100% owned by Gulf Canada Resources (TSE). The outcome of a shareholder vote is somewhat predictable.

If the agreement proceeds, Asamera Minerals would consist of 10 million shares of Corona Corp. plus some Canadian working capital. Craig Langpap, manager investor relations for Gulf Canada, indicated that the options at that point would likely include some form of disbursement to shareholders.

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