TSXV: SFR
VANCOUVER, Jan. 7 /CNW/ - Starfire Minerals Inc. (the "Company" or "Starfire") wishes to announce that the Board of Directors of the Company has approved a major corporate reorganization of the Company in order to maximize shareholder value. Management of the Company has concluded that Starfire's asset value is not fully reflected in its share price and that the Company is currently trading below the combined value of its various assets. In order to unlock shareholder value, Starfire will carry out a corporate reorganization to crystallize and separate each major asset group into its own clearly focused public company. The reorganization will result in three public companies, each with its own focused group of properties.
The Company has completed an independent fairness opinion and valuation to assess the Company's property portfolio and to assist it in determining the division of properties into the major asset groups which will form the businesses of the three individual companies.
Accordingly, the Company proposes to carry out the reorganization, subject to required regulatory, legal and shareholder approvals, through a plan of arrangement (the "POA") with the result that on completion of the POA, shareholders of the Company will hold shares in three public companies as follows:
(a) one public company, Starfire Minerals Inc., that will be comprised of
the Company's Porphyry Pearl property located in British Columbia and
the Black Township property, located in Ontario;
(b) one public company, Starfire Nickel Inc., that will be comprised of
the Company's current nickel properties (being the Langmuir
(Timmins), Shaw Township, Eldorado Township and Carman Township
properties) located in Ontario; and
(c) one public company, Starfire Uranium Inc., that will be comprised of
the Company's current uranium properties (being the Capri, Cross
Structure, Otish Mountain and Lordeau properties, located in Quebec
and the Stobie Lake, Montreal River South, Montreal River North
properties),located in Ontario.
Under the statutory provisions governing the POA, the Company is required to seek preliminary and final court approval to carry out and complete the reorganization, (which is customary in all transactions of this nature). Following preliminary court approval, the Company will mail to its shareholders of record, an information circular setting out, in prospectus level detail, the final terms and conditions of the POA and the basis on which the shareholders will, on completion, hold or receive shares of the three public companies, including the respective share exchange ratios. In addition to court approval, there are a number of other conditions which are required in order to complete the POA, including shareholder, legal and regulatory approvals. While the Company is stating its intent to carry out the reorganization and intends to move ahead expeditiously, because of regulatory and other third party approvals required, it cannot provide any definitive date at this time when the POA might be completed.
Starfire has a significant asset base spread across Canada. These properties include highly prospective uranium, nickel, and poly-metallic properties. Management feels that the clarity developed through a focus on each asset group will clearly enhance shareholder value into the future.
Following the reorganization, existing shareholders will maintain their interest in Starfire Minerals Inc., and have a pro-rata stake in the two additional public companies, each of which offers the potential to realize an increase in asset value not currently reflected in Starfire's share price.
ON BEHALF OF THE BOARD OF DIRECTORS OF
STARFIRE MINERALS INC.
"Dan Mosher"
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Dan Mosher
President/CEO
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