VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/10/13 -- Lion One Metals Limited (TSX VENTURE: LIO) (OTCQX: LOMLF) (FRANKFURT: LY1) (ASX: LLO) ("Lion One" or the "Company") is pleased to announce the approval of the merger by Scheme of Arrangement (the "Merger") announced on December 2012, and amended March 25, 2013, by which Lion One will acquire all of the outstanding shares of Avocet Resources Limited ("Avocet"), of Perth, Western Australia.
On May 27, 2013, Avocet shareholders voted unanimously in favor of the Merger at the Scheme Meeting, with 99.63 percent of the votes cast in favor of the resolution approving the Scheme. Votes in favor exceeded the majorities required for the purposes of the Australian Corporations Act 2001 (Cth) and were consistent with the Avocet board's recommendation to approve the Merger. The Federal Court of Australia approved the Scheme on May 31, 2013. TSX-V approval was granted on June 7, 2013.
For consideration under the Scheme, Avocet shareholders will receive one (1) common share of Lion One for every 9.5 Avocet shares held registered on the record date of June 12, 2013, in the form of a CHESS Depository Interest ("CDI"). CDI's are tradable securities on the ASX and may be converted to common shares of Lion One for trading outside Australia.
Lion One CDI's have commenced trading on the ASX on a deferred settlement basis under the ASX code "LLO". The Merger will be implemented with the share exchange on June 19, 2013, after which holding statements for former Avocet shareholders will be dispatched, and Lion One CDI's will commence trading on a normal settlement basis on June 20, 2013.
The combination of Lion One and Avocet will result in a merged entity retaining Avocet's Perth office to oversee the management of the Tuvatu Gold Project in Fiji, the Olary Creek iron ore joint venture in South Australia, the Monster Gold Project in Western Australia, and its exploration-stage projects throughout Australia and Argentina.
Avocet was formed in 2006 under the leadership of Stephen Mann, former managing director of the Australian subsidiary of AREVA, one of the world's largest uranium mining groups. Avocet controls 26 granted exploration licenses throughout Australia and a further 21 tenements in the Chubut Province of Argentina. Since 2006 Avocet has expanded the exploration and development potential of its properties from primarily uranium to now include properties prospective for gold, copper, rare earths, and iron ore. Major joint ventures are in place with a significant Chinese company on the Olary Creek iron ore project in South Australia, with Cameco, Thundelarra and Cullen in the Ashburton district of Western Australia, and in Argentina with TSX-listed U3O8 Corporation, and with MH Argentina.
Tuvatu Gold Project, Fiji
Lion One will continue to focus on its Tuvatu Gold Project in Fiji, located on the margins of the Navilawa Caldera, a volcanic intrusive complex with a geological setting bearing many similarities with the adjacent Tavua Caldera, which hosts Fiji's largest gold deposit and oldest operating gold mine at Vatukoula. The Fijian Islands themselves are situated along the Pacific Islands Arc, the host of a number of major gold deposits that include Lihir, Porgera, Ok Tedi, and Wafi-Golpu, in PNG.
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