Coventry Resources proposes to sells its major assets for shares, to be distributed under the s. 84(4) sales proceeds rule

Chalice Gold (an Australian public company) is interested in the principal (Ontario) assets of Coventry Resources (a micro-cap BC public company) but not in its Alaskan project.  A proposed B.C. plan of arrangement contemplates that Coventry will sell its Ontario subsidiaries to a subsidiary of Chalice in consideration for Chalice shares, and then effect a stated capital distribution of the Chalice shares to the Coventry shareholders.  Coventry will be left with Alaska.

This PUC distribution clearly fits within ss. 84(4)(a) and (b), so that there would be no question of needing a ruling.  It is interesting to see a Canadian plan of arrangement governing what effectively is a cross-border merger with a Canadian target.

Neal Armstrong.  Summary of Circular for Chalice Gold acquisition of Coventry Resources assets for shares under Mergers & Acquisitions – Cross-Border Acquisitions – Inbound – Asset sale/share distribution.