Constantine Metal Resources gets the go-ahead from shareholders on HighGold spinout

Constantine Metal Resources Ltd (CVE:CEM) (OTCMKTS:CNSNF) is moving forward with its spinout of HighGold following shareholder approval, the company announced Friday.

The Vancouver-based company’s Johnson Tract gold project will be included in the spinout package to HighGold along with the Munro-Croesus project, the Golden Mile project and the Golden Perimeter projects in Timmins, Ontario, as well as a joint venture in Yukon and royalty rights in Ontario.

Constantine recently filed a new technical report for Johnson Tract highlighting 71.4 metres at 20.7 grams per ton gold, 4.9% zinc and 0.88% copper at the project, which is located 200 kilometres southwest of Anchorage, Alaska.

READ: Constantine Metals’ proposed spin-out on track, files new technical report for Johnson Tract project

Under the terms of the deal, Constantine shareholders will receive one HighGold share for every three Constantine shares held.

The shares are subject to a trading procedure known as a due bill, which allow the purchaser, rather than the seller, of Constantine shares to receive the distribution of HighGold shares even if the trades are settled after the July 31, 2019 record date.

Constantine’s shares will begin trading on an ex-distribution basis without due bill entitlement on August 2. The due bill redemption date is August 6.

HighGold’s shares are expected to be listed on the TSX Venture Exchange subject to regulatory approval.

Constantine’s flagship asset is the Palmer ‎project, a high-grade volcanogenic massive sulphide project being advanced as a joint ‎venture between Constantine and Dowa Metals & Mining Co Ltd. Constantine, which owns 51%, is the project operator.

Shares of Constantine gained 3.1% on Friday afternoon in Toronto at C$0.67 and were trading at US$0.47 on OTC markets.

Contact Angela at [email protected]

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Story by ProactiveInvestors