Exeter Resource Corp (AMEX: XRA, TSX: XRC, FSE: EXB) and Extorre Gold Mines (TSX: XG) have closed the previously announced spin-out transaction. Extorre is now trading as an independent company on the Toronto Stock Exchange.
Each Exeter shareholder received one share in Extorre for each share held in Exeter, there was no change in the holdings in Exeter Resource Corp and, after the ‘ex-distribution’ period on 24 March, its listings on the American Stock Exchange (AMEX), Toronto Stock Exchange (TSX) and Frankfurt (NYSEARCA:FSE) will remain unaffected.
Extorre shares will not be listed on AMEX, instead Extorre intends to initially apply for a listing on the OTC-QX exchange. Extorre now holds all of Exeter's former interest in the Argentine Cerro Moro and Don Sixto projects, as well as its Argentine Patagonian exploration projects and an initial C$25m from Exeter. Extorre's initial focus is on development of the Cerro Moro Project, while exploration drilling will continue to test for new high grade vein targets.
Exeter’s current mine development manager, Dr Eric Roth, will be appointed Extorre’s CEO and president. Roth has extensive experience in mine development, through his roles as a mine geologist and an exploration geologist for BHP Billiton (ASX: BHP; LSE: BLT), Rio Tinto (LSE, ASX: RIO) and AUR Resources. Most recently he was head of greenfields exploration for AngloGold Ashanti (LSE, ASX: AGG; NYSE: AU).
Exeter chairman Yale Simpson and CEO Bryce Roxburgh will become Extorre’s co-chairmen. Ignacio Celorrio, an Argentine lawyer specialising in mining law, also joins the board along with Exeter directors Louis Montpellier, Cecil Bond, Robert Reynolds. Darcy Daubaras will be chief finance officer of Extorre.
Exeter continues to hold and focus on advancing the Caspiche Project in northern Chile. The current Exeter board and the Chilean management team will remain to take the Caspiche project forward. Exeter said it intends to continue building shareholder value through the expansion of the large gold-copper resources and the completion of the mine development studies currently underway.
For purposes of shareholders determining the tax basis of their shares in Exeter and Extorre as a result of the spin-out transaction, Exeter's board of directors has determined that the relative value for Exeter and Extorre is 80% and 20% respectively.
Disclosure: The author holds no positions in the company