Korab Resources (ASX: KOR) has revealed that Korab shareholders will receive 1.266 free shares in Lugansk Gold, the Ukranian gold mining spin-off. The Lugansk Gold Ltd indicative IPO issue price has been set at 26-34 cents per share.
Korab shareholders will also receive 1.266 free shares in Melrose Gold Mines, the spin-off of Australian gold assets. the Melrose Gold Mines Ltd indicative IPO issue price has been set at 20-24 cents per
share.
An extraordinary general meeting will be held on 2 July 2010 to approve the above in-specie distribution. The last day to buy Korab shares to be entitled to participate in the in-specie distribution of free shares in Melrose Gold Mines and Lugansk Gold is 5 July 2010.
Record date which will be used to determine the entitlement to receive free shares in Melrose Gold Mines and Lugansk Gold is 12 July 2010.
A meeting of shareholders has been called to approve the transfer of 100 million Lugansk Gold shares and approximately 100 million Melrose Gold Mines shares held by Korab to Korab shareholders at a pro-rata ratio of 1.266 free shares in Lugansk and 1.266 free shares in Melrose for each 1 Korab share held on the record date. Melrose Gold Mines and Lugansk Gold intend to lodge their IPO prospectuses in early July 2010.
Lugansk Gold Ltd will seek an initial listing of LUG in Australia by way of an IPO which will seek to raise between AU$$45 million and AU$55 million to fast track the development of the deposit to become a mid size gold producer focused on European (Bobrikovo) gold and silver projects.
The Bobrikovo JORC Code compliant mineral resource is 20.25 Mt grading 1.55g/t Au for 1,012,194 ounces.