Fronteer Gold Inc. (TSX:FRG)(NYSE Amex:FRG) and AuEx Ventures, Inc. (TSX:XAU) jointly announce the completion of the acquisition of AuEx by Fronteer Gold.
Fronteer Gold acquired all of the shares of AuEx pursuant to a court approved plan of arrangement (the "Arrangement"). The transaction was overwhelmingly approved by over 99.95% of AuEx shareholders who voted at an Annual and Special Meeting of Shareholders held on October 29, 2010. Fronteer Gold has issued 29,761,291 common shares pursuant to the Arrangement.
"We have consolidated ownership of our flagship Long Canyon asset and created a dominant position in the Pequops, Nevada's newest gold trend," says Mark O'Dea, Fronteer Gold President and CEO. "Long Canyon is a unique, high-quality gold project and Fronteer Gold will continue to aggressively grow the resource while advancing the project toward production. We remain well funded to develop our exciting suite of gold projects. We welcome AuEx shareholders as shareholders of Fronteer Gold, and look forward to our continued relationship with the AuEx team as a shareholder of Renaissance Gold."
Under the terms of the Arrangement, effective today, each former AuEx shareholder will receive 0.645 of a Fronteer Gold common share, Cdn$0.66 in cash, and 0.5 of a share in Renaissance Gold, Inc. ("RenGold"), a new exploration company, for each AuEx share held. RenGold holds all of AuEx's exploration assets outside of the Pequop District and has approximately Cdn$5.0 million in cash. Former AuEx shareholders now hold 18.6% of the issued and outstanding shares of Fronteer Gold on a fully-diluted basis and 90.1% of the RenGold shares, while Fronteer Gold holds the remaining 9.9% of the RenGold shares. The RenGold shares have been conditionally approved for listing on the TSX Venture Exchange under the symbol "REN", subject to satisfaction of the requirements of the TSX Venture Exchange, and are expected to commence trading on November 4, 2010.
Former registered shareholders of AuEx will be required to submit their certificates and Letters of Transmittal to Equity Transfer & Trust Company and otherwise follow the instructions contained in AuEx's management information circular dated September 28, 2010, in order to obtain certificates representing Fronteer Gold shares and RenGold shares received pursuant to the Arrangement.
Source: Fronteer Gold Inc.