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Citadel Gold Mines Inc. announces approval of sale of general partnership interest in Citabar Limited Partnership and of restructuring
Citadel Gold Mines Inc. announces approval of sale of general partnership interest in Citabar Limited Partnership and of restructuring.
About this update from Omai Gold Mines Corp.
[{"type":"text","content":"\n\n\n\n\nTORONTO, June 6 /CNW/ - CITADEL GOLD MINES INC. (CGM.H: NEX Exchange).\nFurther to its announcement of May 15, 2006, Citadel Gold Mines Inc. announced\ntoday that at the annual and special meeting of shareholders held on June\n6, 2006, minority shareholders of the Company approved, by the requisite\nmajority, the transaction involving the sale by the Company to Dr. Bernard\nSherman, a principal shareholder and related party of the Company, of the\nCompany's general partnership interest in Citabar Limited Partnership and\ncertain claims related to the Surluga Property in Wawa, Ontario and the\nassumption by Dr. Sherman of certain liabilities of Citadel, for aggregate\ncash consideration of $250,000 (the \"Transaction\"). Completion of the\nTransaction, which remains subject to certain conditions and receipt of all\nrequired regulatory approvals, is expected to occur on or about June 30, 2006.\nThe Transaction will provide the Company with immediate funding in the\namount of $250,000 and is expected to provide additional funding on a deferred\nbasis in the amount of up to $270,000, in funds to be received by the Company\nas a reimbursement of funds previously paid by the Company and held by the\nOntario Ministry of Northern Development and Mines Resources in connection\nwith the 1989 closing of mining operations at the Surluga Property.\nAt the meeting, minority shareholders also approved a proposed\nrestructuring of the Company's current preferred share and debt structure\nwhich is also expected to be completed on or about June 30, 2006.\nSubject to the Company's other obligations, management intends to utilize\nthe proceeds from the completion of the Transaction to launch the Company on a\nnew course by seeking out mineral projects, either at the exploration or\ndevelopment levels, primarily in Canada, but also looking for overseas\nopportunities. Management of the Company believes that completion of the\nTransaction will represent a new beginning for Citadel, which has been\nrelatively inactive for the last several years. It is expected that the\nTransaction and the debt restructuring will put the Company in a position to\nbuild a more active and visible company by taking advantages of opportunities\nfor exploration and development that exist today in the minerals sector.\nSubsequent to the meeting of shareholders, th...