Galahad Metals Board Authorizes Return of Capital
October 07 2011 - 9:56AM
Marketwired
Galahad Metals Inc. ("the Company")(TSX VENTURE:GAX) announced
today that its board of directors has authorized a distribution to
its shareholders of the common shares of its subsidiary, Red Ore
Gold Inc. ("RXX"), by way of a tax-free return of capital, subject
to compliance with applicable laws and receipt of all necessary
regulatory and shareholder approvals. While the details of the
return of capital are being finalized, including the specific
number of the 8.8 million RXX shares held by the Company that will
ultimately be distributed to shareholders, it is anticipated that
only Canadian shareholders entitled to receive 1,000 or more RXX
shares will qualify to receive such RXX shares. All other
shareholders will receive a cash payment equivalent to the value of
the RXX shares that would have otherwise been allocated to
them.
Robin Dow, CEO of the Company, stated that "Galahad has for some
time now been working towards establishing RXX as an independent
publicly listed company. In these difficult markets, the return of
capital is an important step in ensuring that RXX has a sufficient
public float of freely tradable shares. That being said, there is
currently no market for the RXX shares and it is unknown when and
if the RXX shares will be listed or quoted for trading on an
exchange."
To effect the distribution as a tax-free return of capital,
shareholders of the Company will be required to approve a reduction
in the Company's stated capital. Full details regarding the return
of capital and related reduction in stated capital will be included
in an information circular that will be delivered to shareholders
in connection with an upcoming special shareholders' meeting
currently anticipated to be held in mid-November. Upon approval of
the reduction in stated capital and receipt of all necessary
regulatory approvals, the Company will then announce the record
date for the distribution in accordance with the applicable rules
of the TSX Venture Exchange.
For further information, please go to www.galahadmetals.com
"The statements in this Press Release may contain forward
looking statements that involve a number of risks and
uncertainties. Actual events or results could differ materially
from the Company's expectations and projections. The TSX Venture
Exchange has not approved or disapproved of the information
contained in this Press Release."
Contacts: Robin Dow, President, C.E.O
1-888-834-7708robin@dowgroup.ca In Vancouver: Wayne Meredith
1-604-569-2509wayne@dowgroup.ca Investor relations Sean Kingsley
1-877-681-8669s.kingsley@tridentfin.com
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