Avion Gold Corporation reports that shareholders voted overwhelmingly in support of the proposed arrangement agreement between Avion and Endeavour Mining Corporation (TSX:EDV) at today's special shareholders' meeting.
Avion required 66 2/3 of all votes to be in support for the transaction to proceed. Voting results were as follows:
- •Votes cast by common shareholders included 303,759,839 votes FOR, representing 99.48% of votes cast and 1,579,069 votes AGAINST representing 0.52% of votes cast
- Votes cast by common shares holders and option holders included 334,968,006 votes FOR, representing 99.53% of votes cast and 1,579,069 votes AGAINST representing 0.47% of votes cast
Endeavour's shareholders have also strongly supported the proposed arrangement agreement with 93.8% voting in favour of the transaction.
John Begeman, President & CEO of Avion stated, "The overwhelming support received by shareholders affirms management's belief that the proposed acquisition agreement by Endeavour provides Avion shareholders with meaningful ownership in a stronger, cash flow and growth oriented West African-focused mining company. Endeavour is well funded, has available liquidity and strong operating cash flow sufficient to meet the company's foreseeable capital needs. We believe this transaction to be mutually beneficial to both parties and strategically positions the new company for future value creation."
Benefits of the Acquisition to Avion Shareholders:
- Provided Avion shareholders with an immediate and attractive premium to the Avion share price
- Creates a well positioned multi-mine gold producer focused on West Africa with a diversified production base from three producing mines and a strong development profile
- The pro forma company is very well funded with available liquidity and strong operating cash flow sufficient to meet the company's foreseeable capital needs
- Avion shareholders will retain a meaningful ownership stake in the new company providing leverage to the exploration and development successes at Houndé and the resolution of political issues within Mali, in addition to Endeavour's development prospects including the building of the Agbaou gold mine located in Cote d'Ivoire
- The combined company's 2012 production guidance is 282,000 - 304,000 ounces gold with diversified production and cash flow from mines located in major gold producing regions solidifying the company's status as one of the growth leaders in West Africa
- Strengthened management and operations teams with presence focused in geologically attractive regions of West Africa and track record of successfully building and operating mines
- Compelling revaluation opportunity based on an attractive market valuation, strong combined asset portfolio, better near-term liquidity and an enhanced capital markets profile