Jun. 17, 2011 (PR Newswire) --
Mercator and Creston Proceeding to Closing to Create Leading Copper-Moly Company
VANCOUVER, June 17, 2011 /PRNewswire/ - Mercator Minerals Ltd. (TSX: ML) ("Mercator") and Creston Moly Corp. (TSXV: CMS) ("Creston") are pleased to announce that the Supreme Court of British Columbia has granted an order approving the Plan of Arrangement (the "Arrangement") providing for the previously announced friendly business combination of Creston and Mercator.
As announced on June 14, 2011, the shareholders of Creston at its Special Meeting of Shareholders held on June 14, 2011 overwhelmingly approved the Arrangement. A special resolution approving the (the "Arrangement Resolution") was passed by Creston's shareholders present in person and by proxy at the Meeting. A total of 176,668,360 shares voted (excluding shares held by Bruce McLeod, who will become the new President & CEO of Mercator post-arrangement), representing 63.3% of the total eligible votes. Specifically, 99.3% of the votes cast in respect of the Arrangement Resolution voted in favour of the transaction.
Trading of the common shares of Creston on the TSX Venture Exchange will halted at the opening of trading on June 20, 2011.
Subject to the satisfaction of certain other usual closing conditions, the Arrangement is expected to close on or around June 22, 2011.
"Now that the Court Order approving the Arrangement has been obtained, Creston and Mercator will be proceeding with the closing of the business combination. The combination of Mercator and Creston will create a strong copper-moly company, combining an operating mine with a large resource base with excellent prospects for internal growth through the completion of the second phase of expansion at Mineral Park and the development of the El Pilar copper project and the El Creston molybdenum project", said Bruce McLeod, President and CEO of Creston. "Management believes that the new company is well positioned to become a strong intermediate base metals producer."
"Mercator is very pleased to have the support of Creston's shareholders as well as the Court in pursuit of this business combination. We look forward to working with Creston's team to maximize the value of Mineral Park, El Pilar and El Creston", said Michael Surratt, CEO of Mercator.
In other corporate developments, Mercator advises that it has recently received notification of an order instituting administrative proceedings from the United States Securities and Exchange Commission ("SEC") related to a registration statement filed by Silver Eagle Resources Ltd. with the SEC in 1998. Mercator was formerly known as Silver Eagle Resources Ltd. which had different management at the time of the filing. The filing was not disclosed to current management of Mercator. The order alleges that Silver Eagle Resources Ltd. (now Mercator) is delinquent in filing periodic reports with the SEC. Mercator is reviewing this matter with its United States legal counsel in order to resolve the matter. The SEC has placed restrictions on United States broker-dealers' ability to effect transactions in the common shares of Mercator. In the meantime, Mercator common shares continue to trade in Canada on the Toronto Stock Exchange through Canadian broker-dealers. Mercator has traded approximately 99% of its daily total volume in Canada over the preceding six months. All of Mercator's financial statements and annual reports are available at www.sedar.com.