PetroChina to start metals trading, eyeing energy transition
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Western Copper Corporation (TSX:WRN)(NYSE Amex:WRN) announced that its Board of Directors has unanimously approved a proposal to undertake a spin-out transaction that would reorganize the business and capital structure of the company into three separate public companies to allow Western Copper to focus on the development of its flagship Casino copper/gold/silver/molybdenum project.
Pursuant to the proposed transaction, the company will incorporate two new subsidiaries to be named at a later date:
In addition to the transfer of the properties, the company intends to provide each new company with its initial working capital.
It is intended that as part of the reorganization, the company’s current shareholders will receive shares of both Spin Co. A and Spin Co. B in proportion to their shareholdings in Western Copper. The proposed transaction will be completed by way of a Plan of Arrangement to be completed under the Business Corporations Act (British Columbia). The company intends to apply for a listing of the common shares of each of SpinCo. A and SpinCo. B on either the Toronto Stock Exchange (“TSX”) or the TSX Venture Exchange (“TSX.V”).
The Proposed Arrangement remains conditional on the approval of final documentation by the Board of Directors of Western Copper, the approval of the Proposed Arrangement and the listing of the shares of SpinCo. A and SpinCo. B by the TSX or TSX.V (as applicable), the approval of the shareholders of Western Copper, and the approval of the Supreme Court of British Columbia, amongst other things.
Additional details of the Proposed Arrangement will follow upon completion of definitive documentation and will be described in detail in the information circular to be mailed to shareholders of Western Copper in connection with the Company’s special meeting expected to take place in Q3 or Q4 2011 at which approval by the Company’s shareholders of the Proposed Arrangement will be sought.
ABOUT WESTERN COPPER CORPORATION
Western Copper is a Vancouver-based exploration and development company with properties containing significant copper, gold and molybdenum resources and reserves. The company has 100% ownership of four Canadian properties. The two most advanced projects are the Casino Project and the Carmacks Copper Project, both located in the Yukon Territory. The Casino Project is one of the world’s largest open-pittable gold, copper, silver and molybdenum deposits. For more information, visit www.westerncoppercorp.com.
