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Monday, 2nd March 2009 (1905 views)

Mettalum Resources has revealed that it has signed a letter of intent with Solfotara Mining for a reverse takeover of its operations.

The proposed business combination will see Solfotara Mining, which has offices in Vancouver, Canada and Manila in the Philippines, gain ownership of 80 per cent of the shares of the resulting issuer, while existing Metallum shareholders will own around 20 per cent of the fully-diluted shares.

Under the terms of the transaction, Metallum must obtain shareholder approval and implement a consolidation of its shares.

Pending receipt of Toronto exchange approval, Mettalum has agreed to advance CN$250,000 (£137,834) to Solfotara to fund a property option payment relating to the Basay property on the island of Negros.

Privately owned British Columbia company Solfotara Mining has an interest in five exploration properties in the Philippines.

Based in Toronto, Ontario, precious metals exploration firm Metallum Resources has 11 patented and 18 unpatented claims within its Chester gold property in Ontario and was formerly known as Young-Shannon Gold Mines.

 

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