Company News Alert
Inspiration Announces Action to Increase Shareholder Value (ccnm)
TORONTO, ONTARIO--(Marketwire - March 22, 2010) - Inspiration Mining Corporation (the "Company") (TSX:ISM)(FRANKFURT:OI8) would like to announce that it intends to divest itself of the Company's wholly owned subsidiary Metal Mines, Inc. ("Metal Mines") to the shareholders of the Company. Metal Mines is the owner of the Langmuir Property.
Pursuant to the proposed restructuring plan, the Company intends to spin-out Metal Mines as a separate public company whose shares would be listed on the TSX. The current shareholders of the Company will own approximately 90.1% of the issued and outstanding shares of Metal Mines with the remaining 9.9% being retained by the Company. The Metal Mine shares will be distribute to the shareholders by way of a special dividend. Shareholders of record on April 6, 2010 will be eligible to receive the special dividend.
The spin-out of Metal Mines will provide the Company's shareholders with an equity interest in two public companies - Metal Mines and the Company - and will allow the Company to focus on developing its gold and rare earth properties which will be continued to be owned by the Company or its wholly owned subsidiaries.
Mr. Randy Miller, the President of the Company, states "The proposed spin-out of Metal Mines will allow the true value of the Langmuir Property to be unlocked and will also allow the Company to focus its attention on the development of its gold and rare earth properties, the value of which is not reflected in the current market price. On the conclusion of the spin-out, the shareholders of the Company will own shares of two high quality companies."
The proposed spin-out is subject to regulatory and shareholder approval and there can be no assurance that the proposed spin-out would be completed. The listing of Metal Mine's shares will be subject to Metal Mine meeting the listing criteria of the TSX and there can be no assurance that Metal Mines will meet the criteria.
As Metal Mines constitute all or substantially all of the assets of the Company, the proposed divesture must be approved by the Company's shareholders.
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Inspiration is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Inspiration cannot assure investors that actual results will be consistent with these forward looking statements and Inspiration assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.
FOR FURTHER INFORMATION PLEASE CONTACT:
Inspiration Mining Corporation
Randy Miller
President
905.853.7400
www.inspirationmining.com
or
For Investor Relations call:
Gale Capital Corporation
604.221.7604
604.221.7606 (FAX)
galecapital@shaw.ca
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
