TORONTO, April 23, 2018 /CNW/ - Orefinders Resources Inc.
("Orefinders" or the "Company") (TSX.V: ORX) is pleased to provide
an update to its March 26, 2018 News
Release regarding the spin off of Power Ore Inc. ("Power Ore"),
which will acquire Orefinders' past producing silver-cobalt Mann
Mines and MacMurchy Nickel properties. Orefinders has finalized the
structure for its previously announced spin-out transaction and has
entered into a definitive Plan of Arrangement Agreement
("POA").
Orefinders will sell the Mann Mine property and MacMurchy
property to Power Ore in consideration for Power Ore issuing 11
million shares to Orefinders. Pursuant to the POA, Orefinders
will then distribute 5,500,000 of those shares to existing
Orefinders shareholders pro rata. Based on the current issued
and outstanding shares of Orefinders, Orefinders shareholders will
receive approximately 1 Power Ore share for every 16.4 Orefinders
shares held. The effective date for this share distribution to
occur is expected to be on Orefinders Annual General & Special
shareholder meeting, or a few days thereafter. Orefinders will
retain the balance of the 5,500,000 shares on its balance
sheet.
"We are pleased with how this transaction turned out. Our team
views Power Ore as a creative way to produce value for shareholders
where it otherwise was not being realized. This is a win-win
transaction for Orefinders, its shareholders and for Power Ore who
will all participate in the upside potential of the cobalt and
nickel sectors as a result of the battery metal revolution ahead,"
said Stephen Stewart, Orefinders
CEO.
Power Ore's private placement is now fully subscribed, and it
has applied to be listed on the TSXV. Closing of the spin-out and
private placement remain subject to TSXV, court and shareholder
approval. Further information will be included in the information
circular and Annual General & Special Meeting materials being
mailed to shareholders in the near term.
Orefinders Annual General & Special shareholder meeting,
where management will seek shareholder approval for the POA will be
held on May 24, 2018 at 10am at the Company's head office, 2500 – 120
Adelaide Street West in Toronto.
About Power Ore Inc.
Power Ore is positioning itself to be the owner of a diversified
portfolio of battery metal assets in Canada, and is focused on two things:
- Assets whose metals are used in the manufacture of Batteries
for Electrical Vehicles and for Mass Energy Storage on the grid or
in homes. Specifically, Cobalt and
Nickel; and
- Advanced stage assets in Canada where discoveries have been made,
mineralization is well understood and infrastructure is in
place.
Power Ore's first assets will be 100% ownership of the Mann
Silver-Cobalt Mine and the MacMurchy nickel property, both of which
are in the Cobalt – Gowganda district of Ontario.
More details are available at www.powerore.com
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. Certain information in this press release
may contain forward-looking statements. This information is based
on current expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. Orefinders' assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to Orefinders. Additional information identifying risks
and uncertainties is contained in filings by Orefinders with
Canadian securities regulators, which filings are available under
Orefinders' profile at www.sedar.com.
For the latest updates please contact or follow us on Twitter
@OrefindersR
SOURCE Orefinders Resources Inc.