Constantine Metals (OTC Other: CNSNF; TSX-V: CEM) has signed a letter of intent with Carlin Gold and Urban Select Capital to spin out the Constantine-Carlin Yukon joint venture assets (the “Yukon Properties”) into a subsidiary of Urban Select (“SpinCo”). The spin-out will consolidate the joint venture ownership of the Yukon Properties into one company and allows Constantine to focus its efforts on the Company’s core assets in Alaska and Ontario. Under the terms of the LOI, Constantine will receive $500,000 in cash and approximately 14.2 million shares in the SpinCo as well as future share payments if mineral resources are defined on the Yukon Properties. Concurrent with completion of the transaction SpinCo is to complete a $4,000,000 financing that will fund the cash portion of the acquisition cost and provide working capital to explore and drill the Yukon Properties in 2012. Constantine’s anticipated pro forma ownership of the new company will be 28.7 percent, with an estimated market value of $3.5 million. Constantine will have board representation in SpinCo and provide technical advisory services.
Constantine to Spin Out Yukon Gold Assets