TORONTO, Ontario (September 8, 2008)
- PDX Resources Inc. (formerly Pelangio Mines Inc.) (PLG:TSX) ("PDX" or
the "Company") is pleased to announce that at 12:01 a.m. Calgary time
(the "Effective Time") on September 6, 2008 (the "Effective Date") it
completed the previously announced spin-off by way of a plan of
arrangement (the "Arrangement") of all of its assets, other than 19
million common shares ("Detour Shares") of Detour Gold Corporation and
certain working capital, to Pelangio Exploration Inc. ("Exploration").
In connection with the Arrangement, the Company has changed its name
from "Pelangio Mines Inc." to "PDX Resources Inc.". PDX's Common Shares
will continue to trade on the TSX under the symbol "PLG".
Pursuant to the Arrangement, all existing Pelangio shareholders of
record as of the Effective Time on the Effective Date were automatically
issued, without further payment or consideration, one common share in
Exploration ("Exploration Shares") for each common share of Pelangio
held as of the Effective Time. For further details, please see the
press release dated August 26, 2008.
The Company's assets now consist of 19 million Detour Shares and
$500,000 in working capital (the "Detour Property"). The Arrangement
was completed to address the discount in PDX's share price prior to
completion of the Arrangement, which did not accurately reflect its
holding of 20 million Detour Shares, and to improve the market's
valuation of the other properties PDX held prior to completion of the
Arrangement, in particular its interests in its Obuasi property in Ghana
(the "Obuasi Property"). The Company will continue to hold its Detour
Shares for investment purposes, and will review its alternatives as
appropriate. Exploration's assets consist of all of Pelangio's property
other than the Detour Property, and include all of Pelangio's interests
in the Obuasi Property and other Canadian mineral properties and one
million Detour Shares.
Exploration has received conditional listing approval from the TSX
Venture Exchange (the "TSX-V") for the listing of the Exploration
Shares, subject to complying with the conditions of listing imposed by
the TSX-V. The Exploration Shares will trade under the symbol "PX" on
the TSX-V and trading is expected to commence on or about September 10,
2008.
As soon as practicable, registered shareholders of the Company as of the
Effective Time on the Effective Date will be sent share certificates
representing the Exploration Shares that such shareholders are entitled
to receive, as set out above. Beneficial Pelangio shareholders who hold
their shares through a broker or other intermediary should contact
their intermediary to confirm their Exploration Shares have been
credited to their account.
After the Effective Time on the Effective Date, share certificates
representing common shares of the Company prior to the Effective Time on
the Effective Date will represent common shares of PDX under the new
CUSIP number following the Effective Time on the Effective Date. These
share certificates will be replaced over time by share certificates
issued with the name PDX Resources Inc. and the new CUSIP number, for
example, when such Pelangio share certificates are presented to the
transfer agent for transfer. PDX shareholders will also be entitled to
request a replacement share certificate reflecting the new name and new
CUSIP number.
The transfer of the one million Detour Shares to Exploration represents
approximately 2.2% of the issued and outstanding Detour Shares as of
September 6, 2008. Following completion of the Arrangement, PDX holds
19 million Detour Shares representing approximately 42.4% of the issued
and outstanding Detour Shares on September 6, 2008.
For a copy of the early warning report, please contact Terry-Lynn Conway, assistant corporate secretary, at tconway@pelangio.com or 905-875-3828 (toll free: 1-877-746-1632).
About PDX
PDX has a 42.4% equity interest in Detour Gold Corporation, which
controls the Detour Lake advanced gold exploration project. The
near-term objective of Detour Gold Corporation is to advance the Detour
Lake project to development and production.
For additional information, please visit our website at www.pelangio.com or contact:
Ingrid Hibbard, President & CEO or
Warren Bates, Vice President Exploration
Tel: 905-875-3828 / Toll-free: 1-877-746-1632 / Email: info@pelangio.com.
Forward Looking Statements
Certain statements herein may contain forward-looking statements and
forward-looking information within the meaning of applicable securities
laws. Forward-looking statements or information appear in a number of
places and can be identified by the use of words such as "plans",
"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
statements that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements and information include statements regarding
the listing of the Exploration Shares. With respect to forward-looking
statements and information contained herein, we have made numerous
assumptions, including the anticipated listing date. Forward-looking
statements and information are by their nature based on assumptions and
involve known and unknown risks, uncertainties and other factors which
may cause our actual results, performance or achievements, or industry
results, to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statement
or information. See our annual information form, our management
information circular dated March 19, 2008 (the "Circular") and our
quarterly and annual management's discussion and analysis for additional
information on risks and uncertainties relating to the forward-looking
statement and information. There can be no assurance that a
forward-looking statement or information referenced herein or in the
Circular will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements or
information. Also, many of the factors are beyond the control of PDX or
Exploration. Accordingly, readers should not place undue reliance on
forward-looking statements or information. We undertake no obligation
to reissue or update any forward looking statements or information
except as required by law. All forward-looking statements and
information herein are qualified by this cautionary statement.