Fosterville South announces DTC eligibility and updates on recently announced spin out transaction
Fosterville South announces DTC eligibility and updates on recently
announced spin out transaction
VANCOUVER, BC
,
June 29, 2020
/CNW/ -
Fosterville South Exploration Ltd.
("Fosterville South" or the "Company") (TSXV: FSX) (OTC: FSXLF)
(
Frankfurt
: 4TU) is pleased to announce that its common shares are now eligible for electronic clearing and settlement through the Depository Trust Company
("DTC") in
the United States
. DTC is a subsidiary of the Depository Trust & Clearing Corporation, a U.S. company that manages the electronic clearing and
settlement of publicly traded companies. Securities that are eligible to be electronically cleared and settled through DTC are considered to be "DTC eligible".
DTC eligibility is expected to simplify the process of trading and enhance liquidity of the Company's common shares in
the United States
.
The ability to have Fosterville South's shares electronically transferred between brokerages in
the United States
is significantly more convenient and reduces
the costs incurred in trading shares. With Fosterville South's shares now traded electronically, existing investors benefit from greater liquidity and execution
speeds, while we have also opened the door to new investors that may have been previously restricted from our stock.
Further, as an update to Fosterville South's News Release
"Fosterville South to Spin-out Avoca and Timor Tenements,
Victoria
to Leviathan Gold Ltd., the
Shares of Which Will be Distributed to Fosterville South Shareholders"
dated
June 23, 2020
, the Company notes that a record date for shareholders who
are eligible to vote at the special meeting of shareholders which will be held to approve the transaction will be set upon obtaining TSX Venture approval and
meeting other conditions as detailed in the
June 23
rd
News Release.
Each shareholder of Fosterville South at the date the spinout transaction becomes effective (the "Effective Date") will receive one full share of Leviathan Gold
Ltd. for each share of Fosterville South held by such shareholder on the Effective Date. The Effective Date will only occur after the date of the shareholder
meeting and after Fosterville South has received the final approval of the court in respect of the spinout transaction. Fosterville South will issue a press
release announcing the Effective Date of the spin out transaction at least two business days prior to the Effective Date of the spin out transaction in order to
update the market and to permit holders of Fosterville South convertible securities to exercise such securities in order for such holders of Fosterville South
convertible securities to participate in the spinout transaction and receive the Leviathan Gold Ltd. shares being distributed thereunder.
In addition to the common shares currently issued by Fosterville South, there are a total of 6,818,180 warrants exercisable at
$2.00
and 907,935 broker
warrants exercisable at
$1.10
. These warrants and any common shares issued as a result of the exercising of these warrants are restricted until
September
15, 2020
as per the terms of the Company's recently completed
$15 million
financing (see Fosterville South News Release dated
May 14, 2020
). If warrant
holders exercise warrants and receive Fosterville South shares as a result of exercise prior to the Effective Date of the spinout transaction, they will receive
corresponding shares in Leviathan Gold Ltd.
If all these warrants are exercised, this would bring an additional (approximate)
$14.63 million
into the Fosterville South treasury, bolstering an already strong
cash position and balance sheet.
We will keep investors apprised as we advance the regulatory requirements relating to the completion of the Avoca and Timor spin out and provide this link to
a Question and Answer Document regarding the transaction on our website (
https://fostervillesouth.com/questions-and-answers/
).
On behalf of the Company
Bryan Slusarchuk
Chief Executive Officer and Director
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These
statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Fosterville South
cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by many material factors, many of which
are beyond their respective control. Such factors include, among other things: risks and uncertainties relating to
he receipt approvals to complete the spin-
out transaction, the satisfaction of the conditions precedent to the completion of the spin out transaction,
Fosterville South's limited operating history, its
proposed exploration and development activities on is Lauriston and Golden Mountain Properties and the need to comply with environmental and
governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and
expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Fosterville South does not
undertake to publicly update or revise forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts
responsibility for the adequacy or accuracy of this release.
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SOURCE
Fosterville South Exploration Ltd.
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For further information:
Adam Ross, Investor Relations, Direct : (604) 229-9445, Toll Free: 1(833) 923-3334, Email: [email protected]
CO: Fosterville South Exploration Ltd.
CNW 08:00e 29-JUN-20