 |  | |
| |
Strategic Investment in PDX Resources Inc. and Pelangio Exploration Inc.
Prior to September 2008, High River held 12,015,000 common shares of Pelangio Mines Inc. ("Pelangio"). The assets of Pelangio consisted of 20 million shares of Detour Gold Corporation ("Detour Gold") and exploration properties in Ghana and Canada. In September 2008, Pelangio spun out its assets into two companies: PDX Resources Inc., which holds 19 million shares in Detour Gold, and Pelangio Exploration Inc. which holds the other 1 million shares of Detour Gold and Pelangio's exploration properties in Ghana and in Canada. The purpose of this spin out was to achieve full valuation in the market for both the Detour Gold common shares and the Ghana exploration properties. Post spin out, High River held 12,015,000 common shares of both PDX Resources Inc. and Pelangio Exploration Inc.
In January 2009, PDX Resources Inc. announced that it had entered into an agreement to merge with Detour Gold at a share exchange ratio of one PDX Resources Inc. share for 0.2571 common share of Detour Gold, where Detour Gold will become the surviving corporate entity. The purpose of the merger was to eliminate the continuing significant discount in the trading price of PDX Resources Inc. shares relative to the market value of its interest in Detour Gold. The merger was approved by more than two thirds of PDX Resources Inc. shareholders at a special meeting of shareholders on March 27, 2009. High River now owns 3,089,057 shares of Detour Gold.
Strategic Alliance Partnership with Goldrush Resources Ltd. ("Goldrush")
High River holds 7,540,000 shares of Goldrush. High River acquired its interest in Goldrush when the two companies entered into a strategic alliance early in 2006. High River holds back-in rights for 50%, including operatorship, on any economic mineral deposit discoveries by Goldrush in Burkina Faso. In the second quarter of 2008 a mineral resource estimate on the Ronguen gold deposit, located approximately six kilometres from the Bissa deposits, was released. Goldrush curtailed work on its projects in the third quarter of 2008 in order to conserve cash. Goldrush terminated the strategic agreement at the end of 2009. High River still holds back in rights for 50%, including operatorship, on any permit that Goldrush had prior to the termination, including Ronguen.
| | |
