Merger ApprovedTORONTO, ONTARIO--(Marketwire - Dec. 13, 2010) - LEXAM EXPLORATIONS INC. (TSX VENTURE:LEX) and VG GOLD CORP. (TSX:VG)(FRANKFURT:VN3)(OTCQX:VGGCF) are pleased to announce that voting at their separate December 13, 2010 special meetings of shareholders resulted in over 99 percent approval by votes cast in favor of the proposed business combination between Lexam and VG Gold to form Lexam VG Gold Inc.
Shareholders of both companies also voted in favour of the private placement by Rob McEwen, current Chairman and CEO of Lexam, for gross proceeds of $5 million. The business combination and private placement are expected to be completed by year-end.
Tom Meredith, who will become President and CEO of the new Lexam VG Gold, said "We are very pleased by the overwhelming support from our shareholders. This merger will enable the combined Company to prepare for an aggressive exploration program in 2011 with the goal of making a significant high-grade discovery and further expanding our current resources."
Completion of the Arrangement requires the approval of the Superior Court of Justice (Ontario) and satisfaction of certain other conditions precedent. A hearing by the Superior Court of Justice (Commercial List) is scheduled to be held on December 20, 2010.
Upon court approval and all other conditions being satisfied, it is expected that the Arrangement will become effective on January 1, 2010. The combined company, Lexam VG Gold Inc., will trade on the TSX Stock Exchange under the symbol "LEX".