TORONTO, ONTARIO--(Marketwire - July 18, 2012) - MCM Capital One Inc. ("MCM") (TSX VENTURE:ZGN.P), a capital pool company as defined under Policy 2.4 of the TSX Venture Exchange (the "Exchange"), is pleased to announce that it has entered into a non-binding letter of intent (the "LOI") to proceed with an arms-length amalgamation (the "Amalgamation") of MCM with Siguiri Gold Mining Corp. ("Siguiri"), a company incorporated under the laws of the Province of Ontario, to form a newly amalgamated entity which will become the resulting issuer (the "Resulting Issuer") under the name Siguiri Gold Mining Corp. upon completion of the Amalgamation. Pursuant to the terms of the LOI and subject to completion of certain conditions precedent, including, completion by Siguiri of a private placement for approximately $300,000, satisfactory due diligence, execution of a definitive agreement and receipt of all necessary regulatory and Exchange approvals, the proposed Amalgamation will qualify as MCMs "Qualifying Transaction" as defined by Exchange Policy 2.4.
Subject to Exchange approval, MCM intends on lending Siguiri, on a fully secured basis, in one or more tranches, $100,000 in accordance with the rules of the Exchange to be used by Siguiri to pay for: (a) geological work, and (b) general and administrative costs.
About Siguiri Gold Mining Corp.
Siguiri Gold Mining Corp. ("SGMC") has access to 14,000 Ha of exploration concessions in highly prospective areas in Guinea next to producing mines. SGMC's concession is approximately 2 1/2 hours by car South West of Bamako Mali in West Africa and located in the Birimian Greenstone Belt. SGMC's land package has several potential drill targets with similar geological, alteration and mineralization characteristics as other Birimian Greenstone Belt gold projects. SGMC's property is located within approximately 10 km of the AngloGold Ashanti Ltd., Siguiri Gold Mine in Guinea.
About MCM Capital One Inc.
MCM, a capital pool company within the meaning of the policies of the Exchange, was listed on the Exchange on or about January 24, 2012. MCM does not have any operations and has no assets other than cash. MCM's business is to identify and evaluate businesses and assets with a view to completing a qualifying transaction under the policies of the Exchange.
Trading of the common shares of MCM remains halted in connection with the dissemination of this press release, and will recommence at such time as the Exchange may determine, having regard to the completion of certain requirements pursuant to Exchange Policy 2.4. Further details of the proposed transaction, including the consideration to be paid, will follow in future press releases.
The information provided in this press release regarding Siguiri and its management has been provided to MCM by Siguiri and has not been independently verified by MCM.
Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable pursuant to Exchange Requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although MCM and Siguiri believe that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, MCM and Siguiri disclaim any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
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.