Mercator Minerals Ltd ("Mercator" or the "Company") announces that it has been advised by Intergeo MMC Ltd ("Intergeo") that Intergeo does not currently expect to request or agree to an extension of the completion deadline beyond August 1, 2014 in connection with the proposed business combination between Mercator and Intergeo pursuant to the arrangement agreement (the "Arrangement Agreement") between Mercator and Intergeo dated December 12, 2013.
As a result of this information, Mercator intends to fully consider its alternatives over the coming weeks. Intergeo has advised Mercator that it is prepared to waive the non-solicitation provisions in the Arrangement Agreement in order to allow Mercator to fully consider its alternatives.
As previously announced on July 2, 2014, Mercator received correspondence from the Russian Federal Anti]Monopoly Services ("FAS") extending its review of Mercator's application for two months and requesting further information in connection with its review of the application. Mercator has provided the requested information on a timely basis, however, it cannot be determined if FAS will have completed its review of the application prior to the completion deadline of August 1, 2014. Unless FAS has completed its review of the application by the completion deadline of August 1, 2014, the Arrangement Agreement will terminate in accordance with its terms, unless the parties otherwise agree.
"We are extremely disappointed in Intergeo's decision, especially in light of the strong operations and operational cash flows being generated by Mineral Park mine," commented D. Bruce McLeod, President and CEO of Mercator. "We are considering our alternatives in this regard and will continue to provide updates as circumstances develop."
About Mercator Minerals Ltd.
Mercator Minerals Ltd., a TSX listed base metals mining company, operates the wholly]owned copper/molybdenum/silver Mineral Park Mine in Arizona, USA. Mercator also wholly]owns two development projects in Sonora, Mexico: the copper heap leach El Pilar project and the molybdenum/copper El Creston project.
For further information please visit www.mercatorminerals.com
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
D. Bruce McLeod, P.Eng
President and CEO