Scorpio Announces Termination of Merger Between Scorpio Gold and BacTech
19.03.2008 | vom Unternehmen
Vancouver, March 19, 2008 - Scorpio Mining Corporation ("Scorpio Mining") (TSX:SPM), announces that the planned business combination between its 93% owned subsidiary, Scorpio Gold Corporation ("Scorpio Gold") and BacTech Mining Corporation (TSX-V:BM), and all transactions associated therewith, have been terminated by mutual agreement of the parties.The TSX Venture Exchange required a working capital infusion of $4M into the combined company as the last condition in order to grant its approval to the merger. Contrary to what BacTech states in its March 19th, 2008 release about the termination, it had been mutually decided that due to the current equity market conditions that SGC would raise $3M of equity financing and BacTech would raise $1M in flow-through financing. On this basis, subscription agreements for the fund raising were drawn up, however BacTech recently advised it was not prepared to announce and proceed with its financing at this time, leading to the termination.
Scorpio Mining maintains its intention to spin off Scorpio Gold as a separately financed public company, and it will continue to examine alternative means of financing and listing Scorpio Gold in the public markets.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Chairman & CEO
For further information contact:
Glenn Little, Jackson Little Holdings Ltd: 604-930-4375; 1-888-930-4375
Email: jlconsulting@telus.net
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: yes@yesinternational.com
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this news release, other than statements of historical facts, that address future exploration drilling, exploration or development activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration success, mine development priorities, continued availability of capital and financing, and general economic, market or business conditions.