Lode Gold Resources Inc.: Successful Approval of Tax-Efficient Spin-Out of Gold Orogen
Toronto, Ontario – March 11, 2025 – Lode Gold Resources Inc. (TSXV: LOD, OTCQB: LODFF) (“Lode Gold” or the “Company”) is thrilled to share that the proposed plan of arrangement (the “Arrangement”) for the tax-efficient spin-out of Gold Orogen was approved at the Company’s annual general and special meeting of shareholders (the “Meeting”) held on March 10, 2025.
Approval of the Arrangement
The Arrangement, which was a significant milestone for Lode Gold and Gold Orogen, required the affirmative vote of specific percentages of shares, options, and warrants, voting as a single class, present in person or represented by proxy and entitled to vote at the Meeting:
- (i) The Arrangement Resolution needed to be passed by at least two-thirds (66 2/3%) of the votes cast by shareholders of the Company.
- (ii) The Arrangement Resolution also required the affirmative vote of at least two-thirds (66 2/3%) of the votes cast by Company shareholders, optionholders, and warrantholders, voting as a single class.
With the successful approval of the Arrangement Resolution, Lode Gold and Gold Orogen can now proceed with the tax-efficient spin-out.
Impact on Lode Gold Shareholders
The Arrangement is expected to provide several benefits for Lode Gold shareholders:
- Shareholders will receive one common share of Gold Orogen for every five common shares of Lode Gold held.
- The tax-efficient nature of the transaction will minimize the tax implications for Lode Gold shareholders.
- Both Lode Gold and Gold Orogen will have distinct identities and management teams, providing increased focus and potential for growth.
Impact on the World
The successful approval of the Arrangement is a significant event in the mining industry:
- It sets a precedent for other companies looking to undergo tax-efficient spin-outs.
- The separation of Lode Gold and Gold Orogen will create two distinct entities, potentially leading to increased competition and innovation in the mining sector.
- It demonstrates Lode Gold’s commitment to creating value for its shareholders and the mining industry as a whole.
Conclusion
Lode Gold’s successful approval of the Arrangement marks an important step forward for the Company and the mining industry. The tax-efficient spin-out of Gold Orogen will provide benefits to Lode Gold shareholders, while also creating a new entity with distinct management and focus. This event sets a precedent for other companies and is expected to lead to increased competition and innovation in the mining sector.
As a shareholder, you can look forward to the realization of the potential benefits from this transaction. The mining industry as a whole will also benefit from the increased focus and potential growth of both Lode Gold and Gold Orogen. We will keep you updated on any further developments related to this Arrangement.
For more information, please consult Lode Gold’s investor relations website or contact its investor relations team.
