Sterling Resources Ltd. (TSXV:SLG) ("Sterling" or the "Company") confirms that, as previously announced, its board of directors has declared an initial cash distribution (the "First Distribution") to the holders (the "Shareholders") of Sterling's common shares (the "Common Shares") in the aggregate amount of US$92.8 million or US$0.63 per Common Share. The First Distribution will be paid on June 30, 2017 (the "Distribution Date") to shareholders of record on June 26, 2017 (the "Record Date"), subject to the "due bills" trading process described below, and will be made as a return of capital, with the stated capital of the Common Shares being reduced accordingly.
The expected aggregate distributions to Shareholders remains in the range of US$109.3 million to US$112.5 million, as stated in the Management Information Circular dated April 5, 2017, with the second distribution and terminal distribution anticipated to be made on or prior to September 30, 2017 and during the 2018 fiscal year, respectively.
The First Distribution will be made to Shareholders pursuant to the TSX Venture Exchange's ("TSXV") due bill trading policy. Pursuant to the policy:
For clarification, "due bills" will notionally represent the return of capital that Shareholders will be entitled to receive. The due bills will be deemed to be attached to the Common Shares two trading days prior to the Record Date, and will continue to be attached to the Common Shares until the end of the Distribution Date.
Accordingly, the Common Shares will trade on a "due bill" basis from June 22, 2017 until close of trading on June 30, 2017 (the "Due Bill Period"). This means that persons who sell their Common Shares during the Due Bill Period shall also sell their entitlement to the First Distribution to the purchaser(s) of such shares. As a result, the purchaser(s) of the Common Shares during the Due Bill Period pay full value for the Common Shares (including the value of the First Distribution) to the seller. The due bills will be redeemed on July 6, 2017 once all trades with attached due bills entered during the Due Bill Period have settled. The Common Shares will trade ex-distribution commencing on the first trading day following the Distribution Date, being July 4, 2017.
Sterling Resources Ltd. is a Canadian-listed company whose registered office is in Calgary, Alberta. The Common Shares are listed and posted for trading on the TSXV under the symbol "SLG".
SOURCE: Sterling Resources Ltd.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.