Business
Golden Arrow Announces Planned Spin Out Transaction
Golden Arrow Announces Planned Spin Out Transaction
About this update from Argentina Lithium & Energy Corp.
[{"type":"text","content":"\nGolden Arrow Announces Planned Spin Out Transaction\n\n\n Nov. 25, 2009 (TheNewswire.ca) -- Golden Arrow Resources Corporation (GRG - TSX.V)(\"Golden Arrow\" or the \"Company\") is pleased to announce that it intends to complete a spin-out of its Peruvian and Colombian mineral assets to a new company (\"Newco\") under a statutory plan of arrangement (the \"Arrangement\").The recently acquired four properties in Peru, in addition to the previously owned Rio Tabaconas project, will constitute a very important shareholder asset which because of its distinct geographical Peruvian location will be best developed by a newly created public company. This strategy will make it possible for Newco to focus on an aggressive exploration campaign on two already successfully drilled properties: Rio Tabaconas gold project and Cocha high-grade copper-silver discovery. Drill results on Rio Tabaconas includes 18g/t gold over 16 metres (news release dated October 17, 2001); and, drilling on Cocha includes 3.6% copper and 37.9g/t silver over 38 metres (Panthera Exploration news release dated January 11, 2008). The other three ideally located, but earlier stage properties, will be advanced though a series of surface work programs.Newco will utilize the existing offices and network in Lima, Peru which were part of the acquisition and can fully accommodate a geological technical activity. This exciting corporate restructure will have an excellent opportunity focus on new discoveries.Following the completion of the Arrangement, Golden Arrow will retain its Argentinean mineral assets and its royalty interest in Yamana Gold Inc.'s (NYSE:AUY) (TSX:YRI''C) (OOTC:AUYWF) (TSX:YRI) Gualcamayo property (the \"Gualcamayo Royalty) and Newco will apply to be listed on the TSX Venture Exchange (the \"TSX-V\"). As management believes that the Company's share valuation is primarily driven by the Company's Argentinean properties and the Gualcamayo Royalty, management determined that it could maximize shareholder value by spinning out the Company's Peruvian and Colombian properties into a separate publicly listed company that could focus on the development of those properties.Further details regarding the Arrangement will be set out in an information circular that will be sent to Shareholders and Warrantholders in advance of the special meeting of the Shareholders an...