Starcore Spin-Out Values EU Gold Shares at $0.05 and Loans C$500k
Starcore spun out its Cote d’Ivoire mineral interests to EU Gold, issuing one EU Gold share per two Starcore shares valued at $0.05 and reducing shareholders’ cost bases accordingly. Starcore also extended a C$500,000 loan to EU Gold at 5% simple interest and appointed Tanya Lutzke to its board and Audit Committee.
1. Spin-Out of Cote d'Ivoire Interests
Starcore completed its previously approved Plan of Arrangement, spinning out its Cote d’Ivoire mineral property interests to EU Gold in exchange for one EU Gold share per two Starcore shares. The distribution was valued at $0.05 per EU Gold share, lowering Starcore shareholders’ cost bases accordingly.
2. Loan Agreement with EU Gold
Starcore and Spam S.R.L. each extended a C$500,000 loan to EU Gold bearing 5% simple interest over two years. The proceeds will support EU Gold’s general working capital and the Kimoukro Project exploration, with the loan secured by all of EU Gold’s Cote d’Ivoire property interests.
3. Board Appointment of Tanya Lutzke
Tanya Lutzke rejoined Starcore’s board as an independent director and Corporate Secretary, bringing over 21 years of law enforcement, banking and finance experience. She has also been appointed to the Audit Committee to fill a recent officer vacancy.