Jan. 21, 2010 (TheNewswire.ca) --
Golden Arrow Resources Corporation (GRG - TSX.V)("Golden Arrow" or the "Company"), a Grosso Group member company, is pleased to announce that the spinout of its Peruvian and Colombian properties by way of a statutory plan of arrangement (the "Arrangement"), originally announced in Golden Arrow's news release dated November 25, 2009, will be completed effective January 27, 2010 (the "Effective Date"). Golden Arrow advises the Golden Arrow Shareholders and any other potential investors that the Golden Arrow Shares will commence trading without rights in respect of the Arrangement on January 25, 2010 (the "Ex-Rights Date"). Therefore, any investors wishing to participate in the Arrangement must acquire Golden Arrow Shares prior to the Ex-Rights Date.
The new company resulting from the Arrangement will be named Golden Alliance Resources Corporation ("Golden Alliance"), and will be listed on the TSX Venture Exchange (the "Exchange") under the trading symbol "GLL". It is anticipated that the common shares of Golden Alliance (the "Golden Alliance Shares") will begin trading on the Exchange on January 29, 2010.
On the Effective Date, Golden Arrow will transfer to Golden Alliance all of Golden Arrow's Peruvian and Colombian mineral interests and associated assets, plus $930,000 in cash, in exchange for 3,564,665 Golden Alliance Shares and 1,921,800 common share purchase warrants of Golden Alliance (the "Golden Alliance Warrants"). Pursuant to the Arrangement, Golden Arrow will distribute the Golden Alliance Shares to its shareholders (the "Golden Arrow Shareholders") of record as of the Effective Date, on the basis of one Golden Alliance Share for each ten common shares of Golden Arrow ("Golden Arrow Shares"). It will also distribute the Golden Alliance Warrants to its warrantholders (the "Golden Arrow Warrantholders") of record as of the Effective Date, on the basis of one Golden Alliance Warrant for each ten common share purchase warrants of Golden Arrow ("Golden Arrow Warrants"). Pursuant to the Arrangement, the exercise price of all outstanding Golden Arrow Warrants will be reduced by 10%. The exercise price of the Golden Alliance Warrants will be equal to the pre-adjustment exercise price of the Golden Arrow Warrants, and all other terms of the Golden Alliance Warrants will be identical to the Golden Arrow Warrants.
More detailed information on Golden Arrow, Golden Alliance and the Arrangement can be found in Golden Arrow's management information circular dated November 20, 2009, filed on SEDAR at http://www.sedar.com.
Two Publicly Listed Companies: Golden Arrow & Golden Alliance
Following the completion of the Arrangement, the Golden Arrow Shareholders will also be the shareholders of Golden Alliance and the Golden Arrow Warrantholders will be the warrantholders of Golden Alliance. Golden Arrow will retain its Argentinean mineral assets and its royalty interest in Yamana Gold Inc.'s (NYSE:AUY) (TSX:YRI''C) (OOTC:AUYWF) (TSX:YRI) Gualcamayo property. Golden Alliance will pursue the development of its Peruvian and Colombian mineral interests, including the Cocha high-grade copper-silver discovery and the Rio Tabaconas gold project.
This transaction is designed to enhance long-term value for Golden Arrow shareholders by creating two sustainable, independent, publicly traded companies, each with an ability to pursue and achieve greater success by employing more focused operational strategies best suited to its unique assets and business plans. With market conditions now significantly improved, the strategic rationale for creating two leading exploration companies, one focused on Argentina and, the other, on Peru/Colombia, unlocks greater long-term shareholder value.
ON BEHALF OF THE BOARD
Mr. Joseph Grosso, President & C.E.O.
For further information please contact Joseph Grosso, President & CEO, or Corporate Communications at 1-800-901-0058.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
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