Mountain Lake Resources shareholders "overwhelmingly" approve Marathon Gold deal

Mountain Lake Resources (CVE:MOA) announced late Friday that its shareholders overwhelmingly voted to approve its acquisition by Marathon Gold Corp (TSE:MOZ), a $15.1 million deal announced in May that will see the consolidation of ownership for the Valentine Lake project in Newfoundland.

The acquisition will consolidate the respective 50 per cent interests in the Valentine Lake project, resulting in Marathon becoming the 100 per cent owner.

At today's special meeting, Mountain Lake's common shareholders voted 99.9 per cent in favour of the transaction. 

The transaction will also see Mountain Lake's remaining projects transferred to Mountain Lake Minerals Inc., a newly incorporated exploration company.

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 of the new entity for each Mountain Lake common share held.

Mountain Lake's shareholders also voted 78.3 per cent in favour of the Spinco 10 per cent rolling stock option plan.

The company said that Marathon has also advised Mountain Lake that Marathon's shareholders voted 99.9 per cent in favour of the share issuance for the arrangement.

Mountain Lake will apply for a final order of the Supreme Court of British Columbia for approval in early July. Assuming approval, the company expects to close the deal Monday July 9.

The company intends to request a trading halt of its common shares on the TSX Venture Exchange three trading days in advance of the effective date.  As a result, Tuesday, July 3, 2012 will be the last trading day of Mountain Lake's common shares on the exchange.