Silver Bull Announces Intent to Distribute Shares of Arras Minerals to Silver Bull Shareholders
Rhea-AI Summary
Silver Bull Resources (OTCQB: SVBL, TSX: SVB) plans to distribute approximately 34.2 million shares of its subsidiary, Arras Minerals Corp., to its shareholders, equating to one Arras share for each Silver Bull share held. This distribution follows the transfer of Silver Bull's Kazakh assets to Arras, for which Silver Bull received 36 million shares. Upon completion, Silver Bull will retain about 1.8 million shares, representing 4% of Arras' outstanding shares. The distribution is subject to regulatory approvals and is expected to occur before Q3 2021.
Positive
- Proposed distribution of 34.2 million Arras Minerals shares increases shareholder value.
- Silver Bull retains 1.8 million shares of Arras as a strategic investment, enhancing potential future gains.
Negative
- Arras shares may initially be illiquid, affecting trading opportunities for shareholders.
- Distribution is contingent on regulatory approvals, potentially delaying the process.
News Market Reaction – SVBL
On the day this news was published, SVBL declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
VANCOUVER, British Columbia, May 25, 2021 (GLOBE NEWSWIRE) -- Silver Bull Resources, Inc. (OTCQB: SVBL, TSX: SVB) (“Silver Bull”) a mineral exploration company with assets in Kazakhstan and Mexico, is pleased to announce its intent to distribute shares of Arras Minerals Corp. (“Arras Minerals”) to Silver Bull shareholders.
As announced on April 1, 2021, Silver Bull transferred its Kazakh interests, including the Beskauga Option Agreement and the Ekidos and Stepnoe mineral licences, to Arras Minerals, a newly formed British Columbia incorporated company and currently an approximately
Silver Bull intends to distribute approximately 34.2 million shares of Arras Minerals to Silver Bull shareholders, which will result in one Arras Minerals share to be distributed to Silver Bull shareholders for each share of Silver Bull held. Upon completion of the distribution, Silver Bull anticipates retaining approximately 1.8 million Arras Minerals shares as a strategic investment, expected to represent approximately
The proposed distribution of Arras Minerals shares to Silver Bull shareholders does not require shareholder approval, but is subject to certain conditions, including the registration of the Arras Minerals shares under the U.S. Securities Exchange Act of 1934 and final approval by the Board of Directors of Silver Bull. Silver Bull intends to complete the proposed distribution of the shares before the end of the third quarter of 2021, however the actual timing is subject to receipt of regulatory approvals and the final approval by the Board of Directors of Silver Bull.
Silver Bull will provide an update on record and distribution dates for the proposed distribution of Arras Minerals shares if and when it receives requisite approvals, including regulatory and board approvals.
Summary of Arras Minerals’ Assets
The Beskauga deposit is Arras Minerals’ material property and is an open pittable gold-copper-silver deposit with a NI 43-101 compliant “Indicated” Mineral Resource of 207 million tonnes grading 0.35 g/t gold,
The constraining pit was optimised and calculated using a net smelter return cut-off based on a price of:
Table 1. Pit-constrained Mineral Resource estimate for the Beskauga copper-gold project
| CATEGORY | TONNAGE (MT) | CU % | AU G/T | AG G/T | AU (MOZ) | CU (KT) | AG (MOZ) | |
| Indicated | 207 | 0.23 | 0.35 | 1.09 | 2.33 | 476.1 | 7.25 | |
| Inferred | 147 | 0.15 | 0.33 | 1.02 | 1.56 | 220.5 | 4.82 |
The technical information of this news release has been reviewed and approved by Tim Barry, a Chartered Professional Geologist (CPAusIMM), and a qualified person for the purposes of National Instrument 43-101.
On behalf of the Board of Directors
"Tim Barry"
Tim Barry, CPAusIMM
Chief Executive Officer, President and Director
INVESTOR RELATIONS:
+1 604 687 5800 info@silverbullresources.com
Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated, and Inferred Resources: This news release uses the terms "measured resources", "indicated resources", and "inferred resources" which are defined in, and required to be disclosed by, NI 43-101. We advise U.S. investors that these terms are not recognized by the United States Securities and Exchange Commission (the "SEC") under SEC Industry Guide 7. The estimation of measured, indicated and inferred resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that measured and indicated mineral resources will be converted into reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred mineral resources exist, are economically minable, or will be upgraded into measured or indicated mineral resources. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies.
Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations, however under SEC Industry Guide 7 the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures. Accordingly, the information contained in this news release may not be comparable to similar information made public by U.S. companies that report under SEC Industry Guide 7 and are not subject NI 43-101.
Cautionary note regarding forward looking statements: This news release contains forward-looking statements regarding future events and Silver Bull's future results that are subject to the safe harbors created under the U.S. Private Securities Litigation Reform Act of 1995, the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "may," variations of such words, and similar expressions and references to future periods, are intended to identify such forward-looking statements. Forward-looking statements in this news release include, among others, statements regarding the proposed distribution by Silver Bull of shares of Arras Minerals to Silver Bull shareholders and the timing of such distribution. These statements are based on current expectations, estimates, forecasts, and projections about Silver Bull's exploration projects, the industry in which Silver Bull operates and the beliefs and assumptions of Silver Bull's management. Forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, including such factors as the results of exploration activities and whether the results continue to support continued exploration activities, unexpected variations in ore grade, types and metallurgy, volatility and level of commodity prices, the availability of sufficient future financing, and other matters discussed under the caption "Risk Factors" in Silver Bull's Annual Report on Form 10-K for the fiscal year ended October 31, 2020 and our Quarterly Report on Form 10-Q for the interim period ended January 31, 2021 and our other periodic and current reports filed with the SEC and available on www.sec.gov and with the Canadian securities commissions available on www.sedar.com. Readers are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those expressed or implied in the forward-looking statements. Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
FAQ
What is Silver Bull Resources' plan for Arras Minerals shares?
What will Silver Bull shareholders receive during the distribution?
When is the expected distribution date for the Arras Minerals shares?
How many shares will Silver Bull retain in Arras Minerals after the distribution?
Why might the Arras Minerals shares be illiquid?
