TagishTagish Lake CCAA Plan of Arrangement and Compromise Approved and Tagish Lake Enters Into Credit Agreement With New PacificVANCOUVER, BRITISH COLUMBIA, Oct 27, 2010 (MARKETWIRE via COMTEX News Network) --
TagishLake Gold Corp. (the "Company") (TSX VENTURE: TLG) announced today thatat a meeting of the creditors of the Company held on October 22, 2010,100% of the creditors present or represented by proxy approved theamended Plan of Compromise and Arrangement (the "Plan of Arrangement")under the Companies' Creditors Arrangement Act (Canada) (the "CCAA").Pursuant to the Final Order of the Supreme Court of British Columbia(the "Court"), the Court has authorized the implementation of the Planof Arrangement which will result in the repayment of all proven claimsof creditors against the Company as determined pursuant to the CCAAproceeding (the "Proven Claims"). Please see the Company's news releaseof October 15, 2010 for further details of the CCAA proceeding.
TheCompany further announces that it has entered into a credit agreement(the "Credit Agreement") to receive a loan in the principal amount of upto $8,250,000 (the "Loan") with New Pacific Metals Corp. ("NewPacific"). New Pacific holds approximately 79.8% of the issued andoutstanding common shares of the Company.
The Plan of Arrangementcontemplates that the Company enter into the Credit Agreement to fundthe required payments under the Plan of Arrangement. In accordance withthe Plan of Arrangement, New Pacific has provided the proceeds of theLoan directly to Grant Thornton Limited, the monitor appointed under theCCAA proceeding (the "Monitor"). The Monitor will distribute theproceeds of the Loan as set out in the Plan of Arrangement, whichincludes payment of the Proven Claims.
Pursuant to the terms ofthe Credit Agreement, New Pacific agreed to provide a non-revolvingcredit under which the Company could borrow by way of a single advance.The amount owing under the Loan is due and payable on or before October31, 2011. The interest for the Loan is the annual rate of interestannounced by the Bank of Montreal being its prime rate plus 7%. Assecurity for its obligations under the Credit Agreement, the Company hasdelivered to New Pacific a registered debenture in the principal amountof up to $10,000,000 secured by a fixed charge on the Company's assets,including a charge over the Company's assets with respect to the SkukumCreek property. No shares of the Company are to be issued in connectionwith the Loan.
The Company further announces the re-constitutionof its board of directors. Effective October 26, 2010, Graham C.Dickson, Robert E. Chafee, Sun Feng, Peter Holbeck, John Resing and NeilSteenberg have each resigned as directors of the Company and each ofRui Feng, Jack Austin, Greg Hawkins, David Kong and Joanne Yan have beenappointed as directors of the Company.
This news release maycontain forward-looking statements (within the meaning of applicablesecurities laws) relating to the Company. Forward-looking statements areidentified by words such as "believe", "anticipate", "expect","intend", "plan", "will", "may" and other similar expressions. Thisinformation involves known and unknown risks, uncertainties and otherfactors that may cause actual results or events to differ materiallyfrom those anticipated in such forward-looking information.Forward-looking information in this news release includes, withoutlimitation, statements made in respect of the Loan and the CreditAgreement and the continuity of the CCAA proceedings.