Dunnedin to Spin out Au-Cu Assets, Accelerate Warrants

Dunnedin Ventures Inc.(TSXV:DVI) intends to undertake a statutory plan of arrangement, pursuant to which the company will spin out its existing gold and copper assets into a new subsidiary and distribute the shares of the subsidiary pro rata to the shareholders of the company. The company will also accelerate the expiry of 6,078,000 common share purchase warrants and 249,076 finder warrants issued on Feb. 9, 2016, and exercisable at price of 10 cents per common share. The expiry date is accelerated to Friday, Dec. 23, 2016. Assuming all of the warrants are exercised, the company will receive gross proceeds of approximately $632,708.
Additional details of the proposed transactions are provided below. “Dunnedin management is confident that the diamond assets at Kahuna will create significant value for shareholders,” said Chris Taylor, chief executive officer of Dunnedin. “However, there is additional untapped value in gold and copper within the company that we can unlock with a spinout. “The recent identification of widespread gold mineralization at Kahuna, contiguous with Agnico Eagle Mines Ltd.’s Meliadine project, plus excellent gold-copper porphyry results at our 100-per-cent-owned Trapper project, warrant an additional focus on these metals. We believe that separate corporate vehicles for diamond and metal assets will yield the best long-term value to shareholders.”
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