LITERATURE REVIEW — NEWS ROUNDUP — Great Lakes restructures

At a special meeting in late January, more than 98% of the shareholders of Great Lakes Minerals (GKM-T) approved the sale of the company’s Mexican assets to a wholly owned subsidiary, Newmex Mining.

The Toronto Stock Exchange has given conditional approval to the restructuring of Great Lakes. This will involve the sale of the Lluvia de Oro gold project and the Palmarito gold-silver project to Newmex in return for a note in the amount of $14.3 million and 999,999 Newmex shares. It will also involve the distribution by Great Lakes of 1 million Newmex shares, by way of a dividend, to its shareholders of record. The restructuring includes a rights offering whereby 8.2 million Newmex shares at $2 per share will be offered to the holders of the dividended Nexmex shares, for gross proceeds of $16.5 million. Newmex has conditional approval for listing on the TSE.

However, its shares will not be listed on that or any other exchange until after completion of the rights offering.