Corporate Structure
Background
On March 11, 2010 at a special meeting, Exeter Resource Corporation (“Exeter”) shareholders approved a proposal to undertake a spin-out transaction pursuant to which the assets of Exeter would be separated into two highly focused companies. As a result, Exeter transferred to Extorre the Cerro Morro and Don Sixto projects and all other exploration properties in Argentina, together with approximately $25 million. Exeter retained all assets relating to the Caspiche gold-copper discovery in Chile, together with approximately $50 million in working capital, and become a Maricunga district, Chile, focused exploration company.
The spin-out of Extorre was designed to unlock the value of Cerro Moro and the other exploration properties in Argentina for its shareholders. Extorre is an emerging gold-silver producer, leaving Exeter as a single asset company focused on the advancement of the Caspiche gold copper discovery. The spin-out proposal resulted in each Exeter shareholder of record on the effective date of the transaction receiving one share in Extorre for each share held in Exeter. There was no change in shareholder’s holdings in Exeter.