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Re: News Release - Wednesday, December 02, 2009
Board of Directors Unanimously Approves Company Spin-Off
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LETTER FROM THE PRESIDENT
Dear Shareholder,
It is with pleasure that I write this letter inviting you to consider
and to approve the unanimous decision made by Golden Arrow's Board of
Directors and Management to spin-off the Peruvian and Colombian assets
to create a newly listed and more focused public company (see news
release dated November 25, 2009). The shares of this new company will
be distributed to Golden Arrow shareholders on the effective date of
the arrangement, which is expected to be on or about January 15, 2010,
or such later date as the Company determines. Therefore, you the
shareholder will become the beneficial owner of two companies which
will have a distinct and separate focus: one focused on exploring
properties in
Argentina and the other in Peru / Colombia.
This letter precedes the Information Circular and proxy materials which
you will receive shortly in the mail. Please take the time to read the
materials and cast your vote.
It is with great pleasure that I ask you to endorse this transaction
with the same enthusiasm, as this opportunity can generate significant
shareholder value through the discovery potential that the new Company
will be able to exclusively focus on.
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. The resulting shares of the new
company would be distributed to Golden Arrow shareholders as of the
Effective date.
Devoting sufficient attention to Golden Arrow's properties in
Argentina, Peru and Colombia was becoming increasingly difficult. The
Company's share valuation was primarily driven by the Company's
Argentinean properties and the Gualcamayo Royalty, and the value of the
Company's Peruvian and Colombian properties was not being adequately
reflected in Golden Arrow's share price. In response, we have
determined that we could maximize shareholder value by spinning out the
Company's Peruvian and Colombian properties into a separate publicly
listed company that could focus on the development of those properties.
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.
Further details regarding the Arrangement are set out in an information
circular that has been sent to Shareholders and Warrantholders. A
special meeting of the Shareholders and Warrantholders is scheduled to
be held on December 23, 2009 to seek your approval for the proposed
Arrangement. I encourage you to review the material and give this
transaction your endorsement.
ON BEHALF OF THE BOARD
"Joseph Grosso"
Mr. Joseph Grosso, President & C.E.O.
For further information please contact Joseph Grosso, President & CEO
or our Corporate Communications department at 604-687-1828 or toll free
1-800-901-0058 or fax 604-687-1858.
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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Copyright (c) 2009 GOLDEN ARROW RESOURCES CORPORATION (GRG) All rights
reserved. For more information visit our website at
http://www.goldenarrowresources.com/ or send
mailto:info@goldenarrowresources.com
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