Marathon Gold Corp. (TSE:MOZ) Thursday announced that the Supreme Court of British Columbia has approved the company’s bid to take over Mountain Lake Resources (CVE:MOA) - a $15.1 million deal.
The transaction includes Marathon acquiring all of the outstanding common shares of Mountain Lake Resources
and the consolidation of Mountain Lake's and Marathon's respective 50
per cent interests in the Valentine Lake Project in Newfoundland.
As a result of the deal, Marathon will become the 100-per-cent owner
of the project, and Mountain Lake's remaining projects will be
transferred to Mountain Lake Minerals Inc., a newly incorporated
Assuming all other remaining conditions are met, Marathon said it
expects that the closing date of the arrangement will occur on or about
Monday July 9, 2012.
Under the terms of the deal, Mountain Lake shareholders will receive
0.40 of a Marathon common share and 0.40 of a common share in the newly
incorporated company for every Mountain Lake share held.
Marathon Gold is a North American gold resource development company,
with projects located in Newfoundland and Labrador, the Coeur d'Alene
mining district of Idaho and the Greenhorn District of Oregon, USA.
Last month, Mountain Lake Resources announced that its shareholders overwhelmingly voted to approve its acquisition by Marathon Gold.
Mountain Lake requested a trading halt of its common shares on the
TSX Venture Exchange three trading days in advance of the effective
date, and as a result, Tuesday, July 3 was the last trading day of its
common shares on the exchange.