BRITISH COLUMBIA

Almaden Minerals says it's still committed to spinoff plan but will delay vote

12/15/2014 12:37 EST | Updated 02/14/2015 05:59 EST
VANCOUVER - Almaden Minerals Ltd. (TSX:AMM) has announced a six-month delay in a a shareholder vote on plans to create a separate company that would hold its non-core exploration assets.

The Vancouver-based company says the deferral to its annual shareholders meeting in June is a "prudent cost saving opportunity" given challenging market conditions. Almaden says it's still committed to the spinoff, which was announced Oct. 21.

The vote will now be held as part of Almaden's annual general meeting, rather than at a special meeting that was previously planned for mid-December, Almaden said Monday.

Under the spinoff plan, Almaden's non-core assets will be transferred to a new company, run by Almaden's current executive team, and the spinoff company's shares will be distributed to Almaden's shareholders.

Shareholders would receive 0.6 of a share in the new company and one share of a "new" Almaden for each of their current Almaden shares, subject to approvals from a two-thirds majority of its shareholders and the B.C. court.

Among the assets being spun off are royalties on an advanced exploration project in Canada that's being operated by Gold Mountain Mining Corp. (TSXV:GUM), and a portfolio of 21 other royalty projects throughout North America.

The new company will also own 100 per cent of the El Cobre copper-gold exploration projects in Mexico and the Willow gold-silver exploration project in the United States, as well as a portfolio of 20 other projects.