Dublin, Ireland-based Minmet plans to spin off its assets in the Dominican Republic for flotation on the TSX Venture Exchange via a reverse takeover by Ontario-based Wellington Cove Explorations.
The plan calls for Wellington to acquire Minmet’s Dominican-based holding company, Exploration & Discovery Latin America (Panama), by issuing more than 19.6 million newly minted Class A shares (at a deemed price of 15 per share), representing 92% of its expanded share base. Wellington currently has just more than 1.7 million of the shares issued and outstanding.
On completion, Wellington will aim to raise $1.5 million for exploration and corporate expenses by issuing another 5 million shares at 30 apiece. The company will also look to list the on the TSX Venture Exchange. When the dust settles, Minmet will be left with about 70% of the new vehicle.
Wellington will seek shareholder approval for a new slate of directors, the continuation of the company to a federal corporation, a possible name change to GoldQuest Mining, and the adoption of a new stock option plan and by-laws.
MinMet’s Dominican portfolio includes nearly 220 sq. km of wholly owned gold exploration properties with drill targets. The company also has a 51% stake in the Bacco y Ofir and Josefina concessions; Energold Mining (ECD-V) holds the remaining stake. Minmet also has an option on the Longyear 1 and Centenario (El Higo) projects from Energold.
In 2003, Minmet joined with South Africa’s Gold Fields (GFI-N) in the hunt for high-sulphidation gold-silver deposits to the west of Placer Dome‘s (PDG-T) Pueblo Viejo gold project. The pair recently staked several new concessions following a regional stream sediment exploration program. Follow-up work has begun.
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