This morning, Riverside Resources (TSXV: RRI) announced to the market that the effective date for the spin out of its Peñoles silver-gold project in Mexico will be that of market close on August 13, 2020. The spin out will take place by a plan of arrangement with that of Capitan Mining, a soon-to-be-listed issuer on the TSX Venture Exchange.
As of the market close of August 13, current shareholders of Riverside Resources will be issued one new common share of Riverside, along with 0.2767 of a common share of Capitan Mining for every share of Riverside held. The old Riverside shares will then be cancelled, with a new CUSIP number being issued for the company’s common shares on a post-spin out basis.
The new entity, Capitan Mining, has received conditional approval to list on the TSX Venture under the symbol “CAPT”, which is conditional on the completion of a financing for at least $2.0 million. That financing, conducted at $0.20 per share, is said to be fully subscribed for total gross proceeds of $3.5 million.
The Peñoles project is a silver-gold project located in Durango, Mexico. The property, approximately 22.9 square kilometres in size, includes two historic silver mines and an oxide gold prospect. Past exploration work consists of approximately 11,550 metres of drilling across 86 drill holes, with highlights including 7.15 metres of 988.43 g/t silver and 1.24 g/t gold within the first 150 metres from surface. Findings to date are stated to be “potentially amenable to open-pit extraction methods.”
Further, a 43-101 compliant resource estimate previously conducted on the property has provided an inferred mineral resource estimate consisting of 331,000 ounces of gold and 16,990,000 ounces of silver within a total 28,295,000 tonnes of rock.
A firm date for trading of Capitan has not been set, however it is currently expected to take place within August.
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