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Manicouagan Minerals Provides Update on its Amalgamation with Flemish Gold Corp.
Toronto, Ontario CANADA, November 21, 2013 /FSC/ - Manicouagan Minerals Inc. (MAM - TSX Venture), (the "Company" or "MAM"), wishes to update its shareholders in connection with its proposed amalgamation with Flemish Gold Corp. ("Flemish") relating to a reverse takeover transaction (the "Transaction"), pursuant to which the Company proposes to acquire all of the issued common shares of Flemish (the "Flemish Shares") in exchange for common shares of the Company (the "MAM Shares") whereby Flemish shareholders would effectively own approximately 91.4% of the resulting issuer (the "Resulting Issuer") after completion of the Transaction (please see the Company's press releases on December 21, 2012, January 17, 2013, March 13, 2013, May 8, 2013, May 22, 2013 and July 30, 2013, for further information on the Transaction).
On October 15, 2013, the Government of the Republic of Burundi enacted a new Mining Code (the "New Mining Code") which replaced the Mining and Petroleum Code previously in force. The New Mining Code does not have any impact upon the rights and advantages granted to Flemish under the previous legislation during the current terms of such acquired rights. However, the renewal of such rights will be subject to the conditions of the New Mining Code. The New Mining Code differs in several respects from the previous legislation, including but not limited to, increasing applicable taxes payable, providing for new penalty clauses and the inclusion of rights of the State of Burundi and Burundian investors to receive equity interests in corporate applicants, both gratuitously and for purchase, respectively.
Flemish is currently in the process of evaluating the New Mining Code and its impact upon both Flemish and its current property interests in Burundi. Flemish initiated negotiations with the local governmental authorities in Burundi in order to obtain amendments to, or exemptions from, certain provisions of the New Mining Code. There can be no assurance that any such negotiations will be successful. In the event that Flemish is dissatisfied with the impact of the New Mining Code upon its property interests, and the results of current negotiations with the applicable governmental authorities are unsuccessful, Flemish may determine to revise its focus and concentrate its future operations on the exploration and development of its property interests in Uganda where it holds a 100% interest in the Murchison project. The Murchison project covers 1,204.77 km2 including a previously unknown complex of mafic-ultramafic rocks which have potential to host base metal and platinum group mineralization (Ni-Co-Cr-Cu-PGE). The primary target is Karuma Hills, an 8 km by 3 km complex magnetic anomaly where Flemish confirmed Ni-Co-Cr-Cu soil anomalies in third quarter 2013. In December 2013, Flemish plans a ground based TD-EM geophysical survey to cover the Karuma Hills soil geochemical anomalies which were outlined in a survey conducted in the third quarter 2013. Flemish is also in the process of having a technical report prepared on the Murchison project in accordance with National Instrument 43-101.
Following the evaluation and completion of Flemish's negotiations with the local governmental authorities in Burundi on the New Mining Code and the results from the ground geophysical survey in Uganda, the Company will discuss these results with Flemish and their impact, if any, with respect to the Transaction. Following such discussions, the Company will further update its shareholders.