IMZ/Chaparral/Hochschild -- summary under Canadian Buyco

Overview

HOC, which is listed in the U.K. and headquartered in Peru, is interested in the 40% minority interest of IMZ in their Peruvian mining and development joint venture company, but not in IMZ's Nevada and Ecuadorian development properties (held through non-resident subsidiaries). IMZ, a Yukon corporation, with 118M common shares outstanding, is listed on the TSX and the Swiss Stock Exchange. IMZ will transfer its non-Peruvian assets and $58M of cash to a newly-incorporated Yukon subsidiary Chaparral Gold. Pursuant to a Yukon Plan of Arrangement, the shares of Chaparral Gold (which are expected to be listed on the TSX and are anticipated by Paradigm Capital Inc. to become worth between $0.58 and $0.85 each) will then be distributed to the IMZ common shareholders on a s. 86 reorganization, and the IMZ shares will be transferred to HOC Canada for $2.38 per share in cash.

For Detailed Summary, see under Spin-offs - S. 86 reorganization spin-offs.