- Lida Resources Inc. (LIDA) completed a submission to the Canadian Securities Exchange (CSE) for its proposed reverse takeover transaction with Continental Potash Corp.
- The business of the resulting entity will be under Continental’s control
- Continental is a private corporation that holds an option for the Disley Prospect in Saskatchewan
- The resulting issuer will use the proceeds for expenses for the transaction to complete a work program on the Disley Prospect for working capital and general corporate purposes
- Lida Resources Inc. (LIDA) last traded at $0.38 per share.
Lida Resources (LIDA) has submitted its proposed reverse takeover transaction with Continental Potash to the Canadian Securities Exchange (CSE).
Once completed, the business of the resulting entity will be under Continental’s control. Continental is a private corporation that holds an option to acquire certain interests from Buffalo Potash Corporation for the Disley Prospect in Saskatchewan.
Continental is required to complete a $6.3 million brokered private placement which will include up to $2 million in Continental subscription receipts, $0.25 apiece and about $4.3 million in flow-through subscription receipts for $0.30 each.
Once the deal has closed, the gross proceeds of the offering will be placed in escrow and released either to the resulting issuer or to the holders of the subscription receipt.
The offering is also subject to a minimum payment of $3.5 million, an option Agreement between Continental and Buffalo Potash Corporation.
According to Lida, Continental has also agreed to pay a cash commission of 6.00 per cent of the gross proceeds and a 2.00 per cent advisory fee. The two parties have agreed to pay the involved agent a fee of roughly $25,000 and will pay certain expenses.
The resulting issuer will use the net proceeds from the offering to pay for expenses related to the proposed transaction to complete a work program on the Disley Prospect for working capital and general corporate purposes.
Lida Resources is an exploration stage company focusing on mineral properties within the two geographic segments of Canada and Peru.
Lida Resources Inc. (LIDA) last traded at $0.38 per share.
