Re: News Releases - Tuesday, October 30, 2007
Scorpio Gold Corporation Signs Definitive Agreement for Merger
with BacTech and Moves Forwards Towards Listing
Vancouver, October 30, 2007 - Scorpio Mining Corporation (TSX:SPM) is
pleased to announce that its 93% owned subsidiary, Scorpio Gold
Corporation and BacTech Mining Corporation ("BacTech") have completed
their respective due diligence reviews for the proposed merger between
the two companies. As a result, the parties entered into a definitive
merger agreement ("Definitive Agreement") on October 26, 2007.
BacTech will now call a meeting of shareholders to vote on the merger
and related matters. BacTech has secured expressions of support for
the merger from over 40% of its shareholders.
Pursuant to the terms of the Definitive Agreement, BacTech will issue
2.6 common shares for each common share of Scorpio Gold outstanding and
it is anticipated that in connection with the transaction BacTech will
change its name to Scorpio Gold Corporation. The merger will result in
Scorpio Mining Corporation becoming the controlling shareholder of the
The combined company will hold interests in two past producing gold
mines in Nova Scotia, a polymetallic exploration project in the Gaspe,
Quebec as well as additional projects under evaluation by BacTech and
Scorpio Gold Corporation.
Peter J. Hawley, Chairman, CEO comments, "All parties involved are very
excited with this business combination, especially the world wide
application of BacTech's bioleaching technology which is
environmentally friendly and able to recover difficult metals, as
already demonstrated though use of the technology in China and Mexico.
During my recent travels I was quite surprised at the interest and
support the European financial community expressed concerning the usage
of the BacTech technology combined with the track record of Scorpio as
an aggressive, fast moving mining company. We will aggressively pursue
not only start up operations with gold credits but look at the usages
of the technology in countries that have serious environmental
concerns. In that Scorpio Mining will be the majority shareholder of
the merged company, it is expected that its expertise and knowledge in
M�xico will be advantageous to allow the new company to be able to
exploit its cutting edge technology in that country and elsewhere."
BacTech has developed and patented bacterial oxidation technology for
the treatment of refractory ores and complex "dirty" concentrates to
enhance the recovery of gold, silver and base metals, is
environmentally friendly and is one of two companies world wide with a
proven commercial track record for bioleaching, the other being
Goldfields. BacTech has successfully commissioned three bioleach plants
for gold, such as the China Laizhou project of Golden China Resources,
which is currently being taken over by Sino Gold Mining and is
undergoing a current expansion to 150,000 ounces of gold per year and
accepts concentrates from 13 different mines in China. In addition,
BacTech demonstrated its technology, in the selective recovery of base
metals from complex sulphide concentrates in a joint venture project
with Industrias Penoles de C.V of Mexico with a plant set up in
Monterrey where dirty copper-zinc-lead-gold and silver concentrates
from four mines in Mexico were processed by the technology resulting in
selective recoveries of copper and zinc by SX-EW methods and selective
recoveries of gold and silver dore.
For further information on the Company and the Nuestra Se�ora project
plus the Nova Scotia and Quebec assets of Scorpio Gold please visit the
Scorpio Mining web site at: www.scorpiomining.com.
President, Mr. D. Roger Scammell, PGeo, is the Company's Qualified
Person for the technical information in this news release.
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
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090
(outside North America)
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 activities, planned use of bioleaching technology,
completion of the planned merger transaction and similar 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, continued availability of capital and
financing, and general economic, market or business conditions.
Copyright (c) 2007 SCORPIO MINING CORPORATION (SPM) All rights
reserved. For more information visit our website at
http://www.scorpiomining.com/ or send mailto:email@example.com
Message sent on Mon Oct 29, 2007 at 10:44:09 AM Pacific Time