- Origen Resources has announced that it has entered into an arrangement with its subsidiary, Forty Pillars Mining
- Under the arrangement, Origen will spin out its Silver Dollar Property and C$66,893.60 to Forty Pillars
- The arrangement is subject to the approval of the CSE
- Origen is an exploration company engaged in generating, acquiring and advancing base and precious metal properties
- Origen Resources (ORGN) is up 22.22 per cent and is currently trading at $0.22 per share
Origen Resources has announced that it has entered into an arrangement with its subsidiary, Forty Pillars Mining.
Under the arrangement, Origen will spin out its Silver Dollar Property and C$66,893.60 to Forty Pillars.
After the arrangement is completed, Origen will be entitled to receive one common share of Forty Pillars in exchange for every five Origen shares outstanding after the effective date of the arrangement.
Blake Morgan, Origen's President, commented,
"This spin-off, once approved, will be another milestone in Origen's short history. We are pleased that the implementation of our business plan which focuses on generating and then monetizing our mineral assets has resulted in a portfolio of shares currently valued at over $2 million."
Forty Pillars intends to seek a listing of its common shares on the Canadian Securities Exchange following the completion of the arrangement.
The company is presently raising funds by way of convertible note financing to fund its working capital operations and the costs of the arrangement.
On closing of the arrangement, Forty Pillars will conduct a concurrent private placement of common shares at a price of $0.08 per common share for estimated proceeds of $450,000.
The Silver Dollar property is located 45 kilometres southeast of the city of Revelstoke and 15 kilometres north-northeast of the community of Trout Lake, British Columbia in the Revelstoke Mining Division.
Origen will be seeking shareholder approval of the arrangement at the upcoming annual general meeting of shareholders that is scheduled to be held on May 12, 2021.
The arrangement will also be subject to the approval of the CSE and the Supreme Court of British Columbia.
Origen is an exploration company engaged in generating, acquiring and advancing base and precious metal properties.
Origen Resources (ORGN) is up 22.22 per cent and is currently trading at C$0.22 per share as of 3:54 pm ET.