VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 13, 2012) - Savary Gold Corp. ("Savary" or the "Company") (TSX VENTURE:SCA.H) is pleased to announce that it has completed the acquisition (the "Acquisition") of Burkina Gold Corporation ("Burkina"), pursuant to a three-party amalgamation under the Business Corporations Act (Ontario). Pursuant to the Acquisition, Burkina has amalgamated with 2325083 Ontario Inc., a wholly-owned subsidiary of Savary, such that the amalgamated entity is now a wholly owned subsidiary of Savary. In consideration of the Acquisition, the Company issued an aggregate of 7,540,010 common shares to the shareholders of Burkina. In addition, the Company has issued 120,000 common shares as a success fee to BayFront Capital Partners Ltd. Following completion of the Acquisition, Savary has 25,160,010 common shares issued and outstanding. In connection with the Acquisition, Savary has completed a continuation from Alberta to British Columbia under the Business Corporations Act (British Columbia), and has changed its name from Savary Capital Corp. to "Savary Gold Corp."
Subject to final approval of the TSX Venture Exchange (the "Exchange"), the Acquisition and the amalgamation will constitute Savary's Qualifying Transaction under the policies of the Exchange.
In connection with the Acquisition, Savary entered into an escrow agreement, dated August 16, 2012, pursuant to which an aggregate of 875,000 common shares of Savary have been placed in escrow. Under the escrow agreement, 10% will be released on issuance of the Final Exchange Bulletin, and the balance of such shares will be released in tranches of 15% over the next 36 months.
Upon completion of the Acquisition, Scott Ackerman, Robert Chisholm, and Craig Goldenberger have resigned, and the Board of Directors of the Company now consists of Daniel Nocente, Mark Morabito, Stephan Theron and Craig Pearman. The new management team is comprised of Charles Mostert as CEO and Corporate Secretary, and Carlo Valente as CFO.
It is anticipated that trading in the common shares of Savary will resume at the open on Monday, September 17, 2012, under the symbol "SCA", at which time Savary's shares will transfer from NEX to the Exchange, as a Tier 2 mining issuer.
Following completion of the Acquisition, Savary through its wholly-owned subsidiary has the right to acquire from Avion Gold Corp. the South Block of the Hounde Property, located in Burkina Faso, Africa. Additional information regarding the property is available in the independent NI 43-101 compliant geological report and the filing statement dated August 29, 2012, both of which are available on SEDAR.
On behalf of the Board of Directors of SAVARY GOLD CORP.
Charles Mostert, Chief Executive Officer
This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.
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.