Compania Minera Autlan, S.A.B. de C.V.

Compania Minera Autlan, S.A.B. de C.V.

June 30, 2017 16:00 ET

Autlan Completes Sale of 85% Ownership of the Common Shares of GFM Resources Limited

SAN PEDRO GARZA GARCIA, MEXICO--(Marketwired - June 30, 2017) - Compañía Minera Autlán, S.A.B. de C.V. ("Autlan") announces that on June 30, 2017, it completed the sale of an aggregate of 16,370,215 common shares of GFM Resources Limited ("GFMR") to its affiliate Metallorum Holding, S.A.P.I. de C.V. ("Metallorum"). The number of shares represents ownership of 85.77% of the issued and outstanding common shares of GFMR. The sale comprises all of the GFMR shares owned by Autlan.

GFMR is a Yukon-incorporated company listed on the NEX with a head office at Suite 2000 - 1066 West Hastings Street, Vancouver, BC, V7W 2Y3, Canada. Autlan is a public Mexican company trading its shares on the Mexican Stock Exchange, with offices at Av. Pedro Ramírez, Vázquez, 200 - 10, col. Valle Oriente, 66269 San Pedro Garza García, Nuevo León, Mexico.

Metallorum paid Autlan the amount equivalent to CAD $264,000 in cash, or CAD $0.0161 per common share, being this less than 115% of the most recent closing market price of GFMR common shares.

The sale was completed on a private sale basis pursuant to a Share Purchase and Sale Agreement (the "Agreement") between Metallorum and Autlan. Metallorum and Autlan are both under the common control of Mr. José Antonio Rivero Larrea, a Mexican national with an office address at Av. Pedro Ramírez Vázquez 200-10, Col. Valle Oriente, 66269 San Pedro Garza García, Nuevo León, Mexico. As the controlling shareholder of Autlan, Mr. Rivero Larrea may be deemed to be a joint actor with Autlan. The transaction did not affect Mr. Rivero Larrea's control of GFMR. The transaction was a part of a corporate reorganization of Mr. Rivero Larrea's shareholdings. Mr. Rivero Larrea is also a director of GFMR.

The sale was completed outside of Canada and would be exempt from the formal take-over bid requirements of securities legislation pursuant to the exemption set out in Section 4.2 of Multilateral Instrument 62-102 (the "Instrument"). In accordance with that exemption, the sale was made from only one person, no offer was made generally to the common shareholders of GFMR, and the sale price for the common shares was less than 115% of the market price of the common shares, calculated in accordance with the Instrument.

This press release is being disseminated as required by National Instrument 62-103 "Early Warning System and Related Take-Over Bid and Insider Reporting Issues" and Multilateral Instrument 62-104 "Take-Over Bids and Issuer Bids". An early warning report (the "Early Warning Report") containing the information with respect to the foregoing matters will be filed shortly under GFMR's profile on SEDAR (www.sedar.com) and a copy thereof shall be promptly sent to anyone who requests it from the person noted below.

About Autlan:

Autlán is a Mexican company with worldwide recognition as a reliable manganese and ferroalloys supplier because of its high-quality products and commercial service. We generate value for our shareholders, personnel, and customers by using our experience, the best available technology, and future developments as part of the pillars and the company's growth.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Ms. Karina Castaneda
    Internal Counsel
    (+52) 81 8152 1554