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SCOTTSDALE, AZ–(Marketwired – Oct 1, 2013) – International Minerals Corporation (TSX: IMZ) (IMZ.SW) (the “Company” or “IMZ”) announces that it has entered into a binding arrangement agreement (the “Arrangement Agreement”) with Hochschild Mining plc. (“Hochschild”) pursuant to which Hochschild will acquire IMZ, primarily for IMZ’s 40% interest in the jointly-owned (Hochschild 60%) Peruvian assets: the Pallancata silver mine and the Inmaculada gold-silver development project.
Hochschild will acquire all of the issued and outstanding shares of IMZ (other than those that it already owns) by way of a court-approved Plan of Arrangement under the Business Corporations Act (Yukon).
Pursuant to the Arrangement Agreement, each IMZ shareholder (other than Hochschild in respect of the cash) will receive consideration comprising:
- US$2.38 (approximately C$2.46) per common share in cash; and
- One common share of a new Canadian public company (“SpinCo”) for each common share of IMZ.
The following non-Peruvian assets and liabilities of IMZ will be transferred to SpinCo at closing:
- IMZ’s remaining cash and receivables (estimated at approximately US$58 million); and
- IMZ’s non-Peruvian (primarily Nevada) subsidiaries and related liabilities.
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