Plata Latina Minerals said that World Copper got an interim order from the Supreme Court of British Columbia that lets them hold a special shareholder meeting about their deal and send out a joint management information circular.
The court’s approval is a big step in the process of Plata Latina buying the Zonia Copper Project in Arizona from World Copper through a plan of arrangement.
Plata Latina also said that it is sending meeting materials to investors and that it has set its own shareholder meeting for October 16 in Vancouver.
The temporary order lets World Copper put the deal to a vote by shareholders. World Copper also announced that its special meeting would take place on October 16 at 9:30 a.m. in Vancouver.
The company wants permission to sell up to 200 million units in a private placement that doesn’t involve a broker. Each unit will cost 10 Canadian cents and will include one common share and half a warrant.
It also wants investors to agree to give some World Copper option holders new options and to change the company’s name to Edge Copper Corporation. It also wants to combine up to three existing shares into one share after the consolidation.
The release says that directors, officers, and some shareholders who own about 43% of the outstanding shares have signed agreements to vote in favour of the proposals.
The money will pay for the cash part of the deal and the first work on Zonia after the deal closes.
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The circular says that the name change and share consolidation should happen right after the deal is done and the financing is in place, as long as the stock exchange approves it.
The company said that closing is planned for October, but it depends on getting approval from shareholders on both sides, getting court approval for the final order, finishing the financing, and getting the usual exchange and regulatory approvals.
In late July, Plata Latina and World Copper first talked about the deal as part of a plan to make Zonia the centre of a copper company focused on development.
World Copper has said again that the deal is being carried out according to the Business Corporations Act of British Columbia.
It has also given information about the time and place of its special meeting in its own communications.
The interim order and the set meeting date lower the risk of timing problems between the two votes, even though the companies are moving in the same direction.
If the approvals come through and the financing closes, Plata Latina would own Zonia and change its name to Edge Copper. This would make the company the only copper developer in the U.S. with one asset.
The capital raise at a fixed price gives investors a reference point for short term funding and shows how the company plans to pay for both the deal and the early stages of the project.
The voting support from a large group of shareholders gives some visibility on the Plata Latina side, but the final results still depend on the approval of shareholders who don’t have a stake in the company and on outside clearances.
