Business
GPM Metals Inc. Signs Agreement to Sell Guyana Properties
TORONTO , June 13, 2014 /CNW/ - GPM Metals Inc. (" GPM " or the " Company ") (TSX...
About this update from Gpm Metals Inc.
[{"type":"text","content":"\n\nTORONTO, June 13, 2014 /CNW/ - GPM Metals Inc. (\"GPM\" or the \"Company\") (TSXV:GPM), is pleased to announce that it has entered into a non-binding letter agreement (the \"Letter Agreement\") dated June 13, 2014 for the sale of its interest in two gold exploration properties located in Guyana (the \"Properties\"), together with the interest of GPM in all property, assets and rights ancillary to the Properties, to Bartica Investments Ltd. (the \"Purchaser\") for an aggregate cash payment to the Corporation of Cdn.$650,000 (the \"Sale Transaction\"). The cash consideration shall be paid to GPM as follows:\n\n\n\n\n(a)                 \n\n\nCdn$350,000 to be paid on the closing date of the Sale Transaction; and\n\n\n\n\n\n\n(b)                 \n\n\nCdn$300,000 to be paid on or prior to the first anniversary of the closing date of the Sale Transaction.\n\n \n\nThe sale of the properties is consistent with the Company's current focus of acquiring and exploring silver/lead/zinc properties.\n\nThe completion of the Sale Transaction is subject to the satisfaction of certain conditions, including among other things, execution of a definitive agreement, the approval of the TSX Venture Exchange (the \"TSXV\") and, as noted below, the approval of disinterested shareholders. \n\nThe Sale Transaction constitutes a \"related party transaction\" within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") and Policy 5.9 of the TSXV Corporate Finance Manual, because the Purchaser is a company in which Patrick Sheridan, an officer, director and significant shareholder of the Corporation, holds an interest. Accordingly, prior to signing the Letter Agreement, GPM formed a special committee of independent directors to review, consider and make a recommendation to the board of directors of the Corporation (the \"Board\") with respect to the approval of the Sale Transaction. The special committee has received a fairness opinion from Klein Farber Corporate Finance Group Inc. in connection with the Sale Transaction which stated that the Sale Transaction is fair from a financial perspective to th...