Business
Goldstrike Resources Announces Proposed Spin-Off of White Gold District Properties
Highlights: Goldstrike's six 100% owned properties with no underlying royalties or property payments in the White Gold District, Yukon to be spun-out as a stand
About this update from Trailbreaker Resources Ltd
[{"type":"text","content":" Highlights: Goldstrike's six 100% owned properties with no underlying royalties or property payments in the White Gold District, Yukon to be spun-out as a standalone public company, Luckystrike Resources Ltd. Transaction intended to maximize value, allowing the White Gold District properties to be advanced on a standalone basis, while giving shareholders the optionality of participating in both companies. On completion, Luckystrike will have a strong balance sheet with a $2.5 million investment from Goldstrike as well as potential additional third-party private placement financing of up to $2.5 million. Goldstrike shareholders to receive Luckystrike shares on a 1 for 7 basis. On a pro forma basis, Goldstrike shareholders are expected to own approximately 76% and Goldstrike is expected to own approximately 24% of the outstanding Luckystrike shares. VANCOUVER, British Columbia, May 16, 2018 (GLOBE NEWSWIRE) -- Goldstrike Resources Ltd. (\"Goldstrike\" or the \"Company\") (TSX-V:GSR) (Frankfurt:KCG1) (OTC PINK:APRAF) is pleased to announce the proposed spin-off of its six 100% owned properties located in the White Gold District, Yukon by way of a plan of arrangement (the \"Arrangement\") under the Business Corporations Act (British Columbia). In furtherance thereof, the Company has entered into an arrangement agreement (the \"Agreement\") with Luckystrike Resources Ltd. (\"Luckystrike\"), a wholly-owned subsidiary of the Company. Pursuant to the Arrangement, among other things: Goldstrike shareholders will receive one common share of Luckystrike (a \"Luckystrike Share\") for every seven common shares of Goldstrike held; and Luckystrike will indirectly acquire the Company's six 100% owned White Gold District properties, being the Lucky Strike, Hotspot, the Bull’s Eye, BRC, Gold Source and King’s Ransom properties. In addition, prior to completion of the Arrangement, Goldstrike will invest an aggregate of $2.5 million in Luckystrike, by subscribing for 8,333,334 units (the \"Units\") of Luckystrike at a subscription price of $0.30 per Unit, with each Unit consisting of one Luckystrike Share and one warrant exercisable into a Luckystrike Share at a subscription price of $0.60 or such other price as may be acceptable to the Company and Luckystrike for a period of three years after closing, subject to accel...