RE:The year is 2002These are the shares everyone is talking about.
3. Business combination:
During the year ended March 31, 2001, the Company incorporated a wholly owned subsidiary ("Mountain Glen Mining Inc.”) which amalgamated on June 30, 2000, by way of a Plan of Arrangement, with Glenmore Highlands Inc. (“Glenmore”). Glenmore's major asset at the date of the amalgamation was the ownership of 16,015,696, or approximately 37.7%, of the issued common shares of the Company. The amalgamation has been accounted for by the Company as an acquisition of Glenmore by the Company using the purchase method. As consideration for the purchase of Glenmore, the Company issued 15,980,962 common shares to the shareholders of Glenmore on the basis of the exchange ratio of 0.5734401 common shares of the Company for each share of Glenmore outstanding. Provided below is the purchase price allocation. The fair value of the Mountain Province shares of $1.05 per share is based on a valuation opinion by an independent Canadian investment dealer. The results of operations of Glenmore are included in the financial statements of the Company commencing from June 30, 2000. Net assets acquired at assigned values: Current assets $ 33,293 Mineral properties 562,534 Capital assets 113,033 Investment in Klondike Gold Mining Corporation 500,000 Investment in Mountain Province (16,015,696 common shares), owned by Mountain Glen Mining Inc. and eliminated on consolidation 16,816,481 Current liabilities (720,127) $ 17,305,214 Consideration paid: 15,980,962 common shares of Mountain Province $ 16,780,010 Costs of acquisition 525,204 $ 17,305,214 It is anticipated that the Company and Mountain Glen Mining Inc. (“Mountain Glen”) will effect a further reorganization in the future in order to cancel the 16,015,696 common shares of the Company held by Mountain Glen. The shares held by Mountain Glen are non-voting while held by Mountain Glen, no dividend is payable on the shares while held by Mountain Glen and they do not participate in any share distributions, and the Company is unable to sell the shares without prior written regulatory approval.