Friday, 8 June 2012

Mountain Lake to hold special shareholder meeting to approve Marathon bid

Mountain Lake Resources (CVE:MOA) said late Thursday the Supreme Court of British Columbia granted a preliminary order to allow the junior minor to hold a shareholder meeting to approve Marathon Gold Corp.’s (TSE:MOZ) takeover bid.
The special meeting is scheduled to take place on June 29, at 10 a.m. The meeting will be held at the Halifax Club, Nova Scotia.
Last month, the junior miner announced a deal to be acquired by Marathon Gold for $15.1 million, in a move that will see Marathon get a 100 percent stake of the two companies’ Valentine Lake joint venture in Newfoundland.
The deal will also see Mountain Lake's remaining projects transferred to Mountain Lake Minerals, a newly created exploration company.
Marathon Gold is a North American gold resource development company, with projects located in the mining friendly province of Newfoundland and Labrador, the prolific Coeur d'Alene Mining District of Idaho and the historic gold rich Greenhorn District of Oregon, U.S.
Under the terms of the deal, Mountain Lake stakeholders will receive 0.40 common shares and 0.40 shares of the new entity for each share they own.
Mountain Lake said the new company allows its shareholders to retain equity exposure to 100 percent of the Glover Island gold property, 100 percent of Little River gold and antimony asset and 100 percent of the Bobby's Pond base metals property, all located in Newfoundland.
These remaining projects will be transferred to the newly formed company, which will be led by the existing management team and the board of Mountain Lake.
Earlier this week, Mountain Lake also announced high-grade gold mineralization from initial results of a spring and summer drill program at the joint venture Valentine Lake project.
The company noted that the Leprechaun deposit intersected new high-grade main and footwall zone mineralization that adds to the development of down-dip underground mining targets.
Among the highlights, hole VL-12-440 hit 3.81 grams per tonne (g/t) gold (Au) over 21.6 metres. This includes 10.16 g/t Au over 2.4 metres; 10.41 g/t Au over 2.4 metres and 11.37 g/t Au over 1.6 metres.
Hole VL-12-437 returned 6.1 g/t Au over 10.2 metres. This includes 13.33 g/t Au over 3.4 metres and 1.57 g/t Au over 12.75 metres and also includes 3.43 g/t Au over 3.4 metres.
As of March, the Leprechaun deposit held a NI 43-101 compliant measured and indicated resource of 6.45 million tonnes grading 2.05 g/t gold, for a total estimated 424,000 ounces of gold.
In the inferred category, the resource stands at 5.74 million tonnes grading 1.65 g/t gold for an estimated 305,000 ounces of gold.
Mountain Lake is a junior exploration company engaged in the exploration and development of mineral properties located in Newfoundland.

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