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Re: News Releases - Wednesday, March 19, 2008
Scorpio Announces Termination of Merger Between Scorpio Gold and
BacTech
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Vancouver, March 19, 2008 - Scorpio Mining Corporation ("Scorpio
Mining") (TSX:SPM), announces that the planned business combination
between its 93% owned subsidiary, Scorpio Gold Corporation ("Scorpio
Gold") and BacTech Mining Corporation (TSX-V:BM), and all transactions
associated therewith, have been terminated by mutual agreement of the
parties.
The TSX Venture Exchange required a working capital infusion of $4M
into the combined company as the last condition in order to grant its
approval to the merger. Contrary to what BacTech states in its March
19th, 2008 release about the termination, it had been mutually decided
that due to the current equity market conditions that SGC would raise
$3M of equity financing and BacTech would raise $1M in flow-through
financing. On this basis, subscription agreements for the fund raising
were drawn up, however BacTech recently advised it was not prepared to
announce and proceed with its financing at this time, leading to the
termination.
Scorpio Mining maintains its intention to spin off Scorpio Gold as a
separately financed public company, and it will continue to examine
alternative means of financing and listing Scorpio Gold in the public
markets.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Chairman & CEO
For further information contact:
Glenn Little, Jackson Little Holdings Ltd: 604-930-4375; 1-888-930-4375
Email: jlconsulting@telus.net
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090
(outside North America)
Email: yes@yesinternational.com
This news release includes certain statements that may be deemed
"forward-looking statements". All statements in this news release,
other than statements of historical facts, that address future
exploration drilling, exploration or development activities and events
or developments that the Company expects, are forward looking
statements. Although the Company believes the expectations expressed in
such forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in
forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looking statements include
metal prices, exploration success, mine development priorities,
continued availability of capital and financing, and general economic,
market or business conditions.
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Copyright (c) 2008 SCORPIO MINING CORPORATION (SPM) All rights
reserved. For more information visit our website at
http://www.scorpiomining.com/ or send mailto:scorpio@scorpiomining.com
Message sent on Wed Mar 19, 2008 at 12:38:37 PM Pacific Time
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