National Resource proposes amalgamation

The shareholders and partners of National Resource Explorations (TSE) have recently been notified that the company intends to amalgamate with NIM Management, and wind up all six of their partnerships into the new company. All transactions will be based on the net asset values, as of Dec. 31, of all the companies involved. The proposed amalgamation will involve the transfer of one share of National Resource for 0.117 shares of the amalgamated company, and one share of NIM for 270.9 shares of the amalgamated company, to create a total of 3.5 million shares. These shares will then be issued to the shareholders of both National Resource and NIM under the new company name, NIM Petroleum.

Net assets of NIM and National Resource are $20.1 million and $8 million respectively. National Resource has borrowed $3 million from MD Management and plans to sell securities to raise another $15 million.

The Toronto Stock Exchange has accepted the amalgamation proposal conditional on shareholder approval and receipt of requisite documentation before May 17. A meeting of members has been called for April 17, while the amalgamation is to be effective as of April 30.