Rockford Minerals (TSE) has agreed to buy a controlling block of 4.7 million shares of Northern Ranger Minerals (ASE) from Northfield Capital Corp. (COATS) in a share exchange agreement.
Northern Ranger’s main asset is a 10% interest in the Larder Lake, Ont., project in which Rockford Minerals is currently involved.
Under the agreement, Northfield Capital will receive about 3.2 million Rockford common shares in consideration for the Northern Ranger shares in an amount equal to approximately two-thirds of one Rockford share for each Ranger share owned by Northfield Capital.
The number of Rockford shares to be received by Northfield Capital is subject to certain adjustments. Rockford management will have voting control over Rockford shares retained by Northfield Capital and will also have a 90-day right of first refusal in respect of any proposed sale of the Rockford shares by Northfield Capital.
The acquisition is subject to formal agreements and all applicable regulatory approvals.
In other news, when the sale of Northern Ranger shares is complete, Northfield Capital says it intends to distribute to its shareholders, by way of a dividend, 1.6 million Rockford shares to holders of its subordinate voting shares on a pro-rata basis.
According to Northfield Capital, the dividend amounts to about one Rockford share for every five Northfield shares held.
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