Cash delays issuing share dividend

A share distribution by Cash Resources (VSE) is on hold pending further developments at its Division Mountain coal project.

Cash has been working to develop a thermal coal deposit at the property, which would be used in a power generating plant, as well as for potential export. The deposit contains a minable resource of 31.7 million tonnes of volatile bituminous B coal.

Delays encountered in negotiations with the Yukon government and potential customers have prompted the company to postpone a plan to dividend-out 2 million shares of K2 Resources to existing shareholders of Cash. The arrangement would involve transferring all of Cash’s properties (except the coal assets) into K2 Resources.

The K2 dividend would coincide with a rights offering of 3 million shares at 30 cents each, which would raise K2’s total outstanding share position to 5 million.

Shareholder approval is required if Cash decides to proceed with the share distribution.