Merc, thanks for posting. Interesting, on the surface little changes just that XTR would presumably be paying Newco rather than Polar Star for Chepica.
However have a look at Iron Creek Capital's website. The following are of particular interest:
"Iron Creek's business model is that of prospect generator, with a view to building wealth by growing its property portfolio and generating income by farming out its properties in exchange for a combination of retained interests, cash payments, advanced royalties and NSR production royalties over time."
Pure speculation but could we about to be getting an earn in on another project in Chile off the back of this? I see a few of their prospects are very close to Mejillones (one already being optioned out by the looks of it).
Not had chance to investigate them further but that's a very high level observation.
Polar Star and Iron Creek Agree to Merge 09/19/2014
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 19, 2014) -
NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES NOR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Polar Star Mining Corporation (TSX:PSR) ("Polar Star") and Iron Creek Capital Corp. (TSX VENTURE:IRN) ("Iron Creek") are pleased to announce that they have agreed in principle to merge the two companies via a statutory amalgamation, plan of arrangement or similar shareholder approved transaction (the "Transaction"), which will result in Polar Star acquiring all of the outstanding common shares of Iron Creek.
A non-binding Letter of Intent has been signed between the two companies detailing the basic terms of the proposed merger. The companies will strive to arrive at a definitive agreement within 30 days, and close the deal prior to year-end.
The combined companies will re-brand under a new name ("Newco") and will control more than 330,000 hectares of highly prospective exploration ground in northern Chile focused on copper, gold and silver. Newco will have three existing and active option and joint venture agreements with major mining companies.
Under the Transaction an Iron Creek shareholder would receive, in exchange for each Iron Creek share held by it, 3.82 common shares of Polar Star (the "Exchange Ratio"). All outstanding Iron Creek options, warrants or other derivative securities will roll over on the same terms into Polar Star options, warrants or other derivative securities, subject to adjustment to reflect the Exchange Ratio.
In total, Polar Star will issue 147,479,415 common shares to Iron Creek shareholders, representing 42.1% of Newco, with a resultant total of 350,496,190 outstanding common shares of Newco. At the closing of the Transaction, the Polar Star shares will be consolidated at a ratio to be determined by the parties.
Polar Star will continue into British Columbia and the name of Polar Star will be changed to a name to be agreed upon by Polar Star and Iron Creek. Polar Star intends to maintain a main board TSX listing for Newco.
The proposal includes that the current Iron Creek management team will continue the management and direction of Newco. The Board of Directors of Newco will initially comprise 4 current directors of Iron Creek and 2 current directors of Polar Star. The treasuries of the two companies will be combined, resulting in a strong cash position of approximately $3M in Newco, whilst at the same time realizing synergistic cost savings in terms of management and overhead.
Entering into the definitive agreement for the Transaction is conditional upon: the completion of due diligence by both parties; the entering into of support agreements with certain Iron Creek and Polar Star shareholders and all Iron Creek and Polar Star directors and officers; receipt of fairness opinions relating to the Transaction from an
there's also our Polar Star earn in agreement to consider . We quickly progressed from our original 15% ownership of the Chepica project to 25% last February . Even at the AGM it was mentioned Polar Star pay down would be announced within a month or two alas it's been all quite . With our first few months of profits being used to refurbish the mill and updating equipment , further soil sampling , drilling to increase expected life of mine etc ... etc ..... we've loads of news to come . Personally I think Yorkville exiting XTR will have a massive impact on the SP since investors / traders know they've been offloading but when they're out then it's time to already be in . Now from recent days , dummy trades I'm glad I'm already in and like yourself have to pinch myself not to get to carried away or top slicing will get the better of me when the fun starts . Have a plan and stick to it I was told a while back and that's paid handsomely over the last two years
So tempting to buy more but in as deep as I dare here now. Must just sit and wait for news. As has been said before I think H1 report will boost us to a new level but it'll be early next year we start to see real value (and bigger investors creeping in) I see 4 markers for gauging the BOD's success: - returning any kind of profit YTD (I.e. End of Aug) - the exit of YA and thus the end of any 'debt' - growth in both production and bottom line come Q1 2015 - new projects coming online, either Mejillones or something we don't know about yet.
There's also an extra possible bonus of GOS listing.
lol ....lol .... nah ...... not mine but with the free float indicating Yorkville are well and truly heading for the door I find it hard not to . Just got no room in my ISA account which is where XTR shares need to be . Might do a bit of juggling around and sell some SOLG for a final top up but that negotiated trading malarkey dampens that thought . I'm enjoying reading about your South America exploits and to be honest surprised how modern it is . I traveled the Australasia's for many years and chose that area for what I assumed would be a similar environment to Europe . How wrong I was as I still remember flying into Perth back in 1986 aboard a 100 seat plane with a cross wind blowing the thing every which way and landing on what appeared to be an old military runway . Yep , Perth didn't even have an International airport back then but ironically had a bus service to it whereas today it hasn't ....... lol ..... progress ... hey .... lol
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