Oct 21 2010
Mineral Deposits Limited (TSX:MDM)(ASX:MDL) has announced that as part of its intention to demerge the Sabodala gold operation from the Company, a preliminary prospectus has been filed with the securities regulatory authorities in each of the provinces of Canada except Quebec for a proposed initial public offering of common shares of Teranga Gold Corporation, a new Canadian incorporated company which is intended to own the Sabodala gold operation as well as a minority equity position in Oromin Explorations Ltd.
The underwriting syndicate for the offering is to be led by Cormark Securities Inc. and GMP Securities LP.
Details of the demerger proposal are set out in the Notice of Special and Annual General Meeting and Explanatory Memorandum that has recently been despatched to shareholders for the purpose of, amongst other things, seeking the approval of shareholders to effect certain transactions as part of the demerger proposal. The Special and Annual General Meeting will be held on 9 November 2010.
It is proposed that, subsequent to the demerger and IPO, MDL shareholders will own shares in Teranga Gold, which will own the Sabodala Gold Assets, as well as their shares in MDL, which will continue to own the Grande Côte mineral sands project as well as a minority interest in Teranga Gold.
Source: Mineral Deposits Limited