Canadian junior Explorex Resources Inc (CSE:EX) (OTCMKTS:EXPXF) has set out the terms, in which it will spin out its exploration assets, as part of a series of deals leading to a reverse takeover of Raffles Financial Private Ltd.
As reported on December 23, the move marks a fundamental shift in direction for the resource group as it becomes a financial services group.
Explorex's current exploration assets, including in Finland and Canada, along with C$500,000, will be spun out, the Vancouver-based firm said in Tuesday's statement.
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Shareholders will receive one share of the 'Spinco' in exchange for two Explorex shares. Spinco then intends to seek a listing on the Canadian Securities Exchange (CSE).
Explorex will seek shareholder approval for this arrangement at an upcoming special meeting due on or around March 9 this year.
Also today, Explorex said it had approved a non-brokered private placement of over 2.7 million shares at C$0.22 each for total gross proceeds of up to C$500,000.
The proceeds are earmarked for working capital and to provide a portion of cash to Spinco under the arrangement.
In the statement in December, it was reported that Explorex and Raffles Financial expect the transaction to close by March 16 this year.
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