WGI Heavy Minerals Calls Shareholder Meeting to Approve Capital Distribution

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[{"type":"text","content":"\n\n\n\nCOEUR D'ALENE, ID, Oct. 27 /CNW/ - WGI Heavy Minerals, Incorporated (WGI)\n(TSX: WG) today announced that its board of directors has approved a special\ncash distribution to shareholders in the amount of US$0.80 per share. This\nspecial distribution represents a return to the shareholders of up to\nUS$19.5 million (including distributions on shares anticipated to be issued\nupon the exercise of restricted stock units or stock options) to shareholders\nof record on December 19, 2008. It is anticipated that the special cash\ndistribution will be paid to shareholders on December 22, 2008.\n\n\nThe Company previously announced its intention to distribute US$0.80 per\nshare in cash upon the completion of the sale of Transworld Garnet India (Pvt)\nLimited (TGI). The sale of TGI was completed on September 12, 2008 with effect\non August 14, 2008 after substantially all of the proceeds of sale and\nrepayments of debt were released from escrow and repatriated to WGI.\n\n\nThe special cash distribution will be made in the form of a return of\ncapital to the extent that the return of capital does not exceed the paid-up\ncapital of the Company's shares and is not a taxable dividend for Canadian\nincome tax purposes. The Company has sought a ruling from the Canada Revenue\nAgency to confirm the acceptable level of capital that may be returned to\nshareholders. It is estimated that the return of capital portion of the\nspecial cash distribution will be in the range of US$0.60 per share to US$0.80\nper share. The balance of the special cash distribution, if any, will be\ndistributed as a taxable dividend.\n\n\nThe portion of the special distribution that will be a return of capital\nis subject to the approval by shareholders of a resolution authorizing the\nreduction of the stated capital of the Company's common shares and the receipt\nof a final advance tax ruling from the Canada Revenue Agency.\n\n\nThe Company will promptly request a shareholder meeting to approve the\nproposed reduction of stated capital. A proxy circular will be mailed to WGI's\nshareholders in November for a meeting to be held on December 11, 2008. The\nrecord date for the shareholders meeting is November 11, 2008. At that\nmeeting, shareholders will be asked to approve a reduction of stated capital\nfor the Company's common shares and a return of that amount of ...

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