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Written by THE CANADIAN PRESS
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Thursday, 17 July 2008 |
Kentucky Derby and Preakness winner Big Brown, foreground, with exercise rider Michelle Nevin up, walks onto the track for a light training gallop around the track at Belmont Park Wednesday, May 28, 2008 in Elmont, NY. THE ASSOCIATED PRESS
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HALIFAX - Erdene Resource Development Corp. (TSX:ERD) is taking a majority interest in Beta Minerals Inc. (TSXV:BMI) in exchange for U.S. subsidiary Erdene Materials Corp., which owns a large kaolin resource in central Georgia.
Dartmouth-headquartered Erdene said Thursday its construction aggregate assets will be transferred to a separate company it owns, while the Georgia clay resource - estimated to contain 21.9 million tons of kaolin, used in pigments for the paper industry and in paints, plastic, rubber and ceramics - is taken over by Vancouver-based Beta Minerals.
Under the deal, subject to 30 days of due diligence, Beta is to consolidate its stock 10 for one, leaving it with 3.1 million shares, then will issue 11.7 million shares to Erdene and one million to Deepstep Kaolin Co. LLC.
This will leave Erdene with 72 per cent of the stock in Beta, and it will nominate a new board of directors for the development-state mineral explorer, which has a current stock-market value of $2.8 million on the TSX Venture Exchange.
The arrangement "provides for initial funding of very promising business opportunities that will be advanced independently through a new public entity," stated Ken MacDonald, chief financial officer of Erdene, which has a TSX valuation of $72.3 million.
"With EMC's primary clay projects already producing for the paper industry and new ceramic applications moving through final commercial testing we envision significant growth in these areas as well as rapid advancement of other opportunities."
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Last Updated ( Thursday, 17 July 2008 )
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