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Selkirk Metals and Doublestar Resources to Merge to Accelerate Development of their Flagship Ruddock Creek Property
Selkirk Metals and Doublestar Resources to Merge to Accelerate Development of their Flagship Ruddock Creek Property.
About this update from Record Resources Inc
[{"type":"text","content":"\n\n\n\nTSX Venture Symbol: DSR\n\n\nTSX Venture Symbol: SLK\n\n\nVANCOUVER, March 1 /CNW/ - Selkirk Metals Corp. ("Selkirk") (TSX-V: SLK)\nand Doublestar Resources Ltd. ("Doublestar") (TSX-V: DSR), joint venture\npartners since 2004 in the Ruddock Creek zinc-lead property 100 kilometers\nnorth of Revelstoke, announce today that they have executed a binding letter\nof intent intended to merge their businesses. The combined assets of both\ncompanies, should the merger proceed as currently planned, would result in\napproximately $14 million in current assets and a strong suite of B.C base\nmetal mineral projects.\n\n\nThe merger is expected to proceed based on a court-approved plan of\narrangement under the British Columbia Business Corporations Act (the\n"Transaction").\n\n\nUnder the terms of the Transaction, it is proposed that each existing\nClass "A" share of Doublestar will be exchanged for one-half of one common\nshare of Selkirk. In addition, all existing warrants of Doublestar and the\noutstanding stock options of Doublestar held by certain employees will be\nexchanged for economically equivalent warrants and options of Selkirk, based\nupon the same exchange ratio described above.\n\n\nGordon Keevil, President of Selkirk, stated, "This transaction, which is\nfinancially positive to Selkirk, will consolidate the working interest in the\nRuddock Creek Property putting Selkirk in a much stronger position to advance\nits exploration and ultimate development. Furthermore, Selkirk looks forward\nto the addition of Doublestar's excellent portfolio of properties, which will\nenhance our already strong and diverse property base. We will continue to\naggressively advance all of these properties to create greater value for our\nshareholders, including those we are inheriting from Doublestar through this\ntransaction. We are also looking forward to working on an ongoing basis with\nthe management of Doublestar to achieve the best possible results on behalf of\nthe shareholders of both Selkirk and Doublestar."\n\n\nAlan Savage, Chief Executive Officer of Doublestar, said, "Doublestar's\nboard of directors fully supports the Selkirk proposal. This transaction can\neffect enhanced shareholder value for both companies by placing the\nworld-class potential of the Ruddock Creek zinc-le...