Confederation Minerals Announces Distribution of Common Shares of Magna Resources to Confederation Shareholders
Confederation Minerals Ltd. (CFM.V) announced that it intends to distribute a majority of its approximate 56% interest in the share capital of Magna Resources Ltd. on a pro rata basis to Confederation shareholders.
Confederation acquired the Magna shares from Magna earlier this year pursuant to a transaction involving the transfer of Confederation's 50% interest in American Potash LLC to Magna and a concurrent private placement of Magna shares.
Confederation said it completed this transaction in order to focus on its Newman-Todd gold exploration project while still maintaining the company's major position in the highly-prospective potash holdings in Utah, and did so with the intent to eventually re-distribute the Magna shares directly to Confederation shareholders.
The proposed distribution requires approval from the Supreme Court of British Columbia.
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