Caribou Announces Strategic Plan to Spin-Off Timmins Gold Assets
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/14/13 -- CARIBOU KING RESOURCES LTD. ("Caribou" or the "Company") (TSX VENTURE: CKR)(FRANKFURT: CB8) announces plans to spinoff non graphite interests. The Board of Directors of the Company has determined that would it be in the best interest of the Company to segregate its mineral classes into new and distinct companies by way of a spin-off strategy. The objective of this plan is to separate the gold, via the spin-off entity and graphite opportunities from the Company's portfolio. In turn, it is the intent of the Company that each of the entities will then become a "pure play" in nature and not have co-mingled mineral classes.
Caribou shareholders will be issued common shares in the subsidiary entity that is expected to be a share exchange ratio of 1 new for five old. Shareholders will be defined as those holders of common shares of Caribou as of the record date, which has yet to be set by the Company. The Board of Directors of the Company will determine the date for the distribution of shares from the spin-off company and a news release announcing the record date will be issued at that time.
"The proposed transaction is an exciting opportunity for Caribou and its security holders," said Michael England, Caribou's CEO. "This transaction will provide loyal Caribou shareholders with a meaningful incentive and reward reflecting the progress we have made with the company on the graphite front and, participation in an exploration Spinco with a portfolio of prospective assets located in Timmins, Ontario. We believe this unbundling of the five new Graphite projects from Caribou's other exploration assets will ultimately create the greatest value for our security holders."
This strategic plan remains subject to shareholder and regulatory approval and conditional on necessary financing.
For more information, visit the website at www.caribouking.com.
ON BEHALF OF THE BOARD
Michael England, CEO, Caribou King Resources Ltd.
Neither the 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.
Contacts:
Caribou King Resources Ltd.
Michael England
CEO
1-604-683-3995 or Toll Free: 1-888-945-4770
www.caribouking.com
