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Contango ORE Expects to Distribute Oil and Gas Company Stock
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Favoritearea.com – Contango Oil & Gas Company announced today that beginning October 13, 2010 its stock will trade separately from the stock of Contango ORE, Inc. called CORE which the Company expects to distribute to its shareholders in late November or early December 2010 following registration with the SEC. CORE has been formed to explore for gold and rare earth minerals in the State of Alaska.
One share of CORE will be distributed for each 10 shares of the Company. No fractional shares will be issued, but a cash payment will be made to shareholders of the Company with less than 10 shares based upon the value established for CORE immediately before the distribution. The record date for shareholders for the distribution is October 15. The Company anticipates that the shares of CORE will trade on the OTCBB after the distribution.
Contango Oil & Gas has obtained a valuation report from Avalon Development Corporation, a Fairbanks, Alaska-based mineral exploration consulting firm, of the value of the assets constituting the mineral properties owned or controlled by CORE. Based on that valuation report and the planned $3.5 million cash investment in CORE immediately before the distribution, the Company believes the value of the assets contributed to CORE and distributed to Company shareholders will be approximately $0.45 per share.