VANCOUVER, Jan. 7 /CNW/ - Starfire Minerals Inc. (the "Company" or
"Starfire") wishes to announce that the Board of Directors of the Company has
approved a major corporate reorganization of the Company in order to maximize
shareholder value. Management of the Company has concluded that Starfire's
asset value is not fully reflected in its share price and that the Company is
currently trading below the combined value of its various assets. In order to
unlock shareholder value, Starfire will carry out a corporate reorganization
to crystallize and separate each major asset group into its own clearly
focused public company. The reorganization will result in three public
companies, each with its own focused group of properties.
The Company has completed an independent fairness opinion and valuation
to assess the Company's property portfolio and to assist it in determining the
division of properties into the major asset groups which will form the
businesses of the three individual companies.
Accordingly, the Company proposes to carry out the reorganization,
subject to required regulatory, legal and shareholder approvals, through a
plan of arrangement (the "POA") with the result that on completion of the POA,
shareholders of the Company will hold shares in three public companies as
(a) one public company, Starfire Minerals Inc., that will be comprised of
the Company's Porphyry Pearl property located in British Columbia and
the Black Township property, located in Ontario;
(b) one public company, Starfire Nickel Inc., that will be comprised of
the Company's current nickel properties (being the Langmuir
(Timmins), Shaw Township, Eldorado Township and Carman Township
properties) located in Ontario; and
(c) one public company, Starfire Uranium Inc., that will be comprised of
the Company's current uranium properties (being the Capri, Cross
Structure, Otish Mountain and Lordeau properties, located in Quebec
and the Stobie Lake, Montreal River South, Montreal River North
properties),located in Ontario.
Under the statutory provisions governing the POA, the Company is required
to seek preliminary and final court approval to carry out and complete the
reorganization, (which is customary in all transactions of this nature).
Following preliminary court approval, the Company will mail to its
shareholders of record, an information circular setting out, in prospectus
level detail, the final terms and conditions of the POA and the basis on which
the shareholders will, on completion, hold or receive shares of the three
public companies, including the respective share exchange ratios. In addition
to court approval, there are a number of other conditions which are required
in order to complete the POA, including shareholder, legal and regulatory
approvals. While the Company is stating its intent to carry out the
reorganization and intends to move ahead expeditiously, because of regulatory
and other third party approvals required, it cannot provide any definitive
date at this time when the POA might be completed.
Starfire has a significant asset base spread across Canada. These
properties include highly prospective uranium, nickel, and poly-metallic
properties. Management feels that the clarity developed through a focus on
each asset group will clearly enhance shareholder value into the future.
Following the reorganization, existing shareholders will maintain their
interest in Starfire Minerals Inc., and have a pro-rata stake in the two
additional public companies, each of which offers the potential to realize an
increase in asset value not currently reflected in Starfire's share price.
ON BEHALF OF THE BOARD OF DIRECTORS OF
STARFIRE MINERALS INC.
THIS PRESS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL
RESPONSIBILITY FOR ITS CONTENTS.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
OR ACCURACY OF THIS RELEASE.
For further information:
For further information: Starfire Minerals Inc., 520-355 Burrard Street,
Vancouver, B.C., V6C 2G8, Telephone: (604) 669-5642, Facsimile: (604)