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TORONTO,
ONTARIO--(Marketwire - July 16, 2009) - CASTLE GOLD CORPORATION
("Castle Gold") (TSX VENTURE:CSG) is pleased to provide a
further update from the Mergers & Acquisitions Committee
("Committee") on the strategic alternative review
("SAR") process.
The calibre of the final candidates selected is very high and the
advancements achieved, in the final stage of the SAR process, are very
encouraging. Prior to the recent deadline for submission of final
binding offers, two of the candidates requested more time to complete
their detailed technical and financial evaluations in consideration of
potentially submitting a final, binding offer or definitive agreement. The
Committee met to consider these requests and decided to grant them. The Committee believes that
granting the requested extension to permit completion of the remaining
detailed due diligence, provides the greatest potential benefit for
Castle Gold shareholders.
The Committee is pleased with the discussions, negotiations, progress,
and submissions held with and received from the selected candidates to
date. However, the Committee is not able to announce any specifics on
the advancements made in this regard for confidentiality reasons. The
Committee does not plan to provide a further M&A update until there
is either an announce able event, such as the selection and execution
of one final definitive agreement for a strategic transaction, or,
alternatively, the Committee elects to proceed with its alternate
aggressive organic growth strategy for maximising shareholder value as
discussed in our most recent news release.
The Committee will continue to proceed with patience and vigilance,
actively working with the candidates to advance their final
evaluations. This work is very time consuming to complete with one
candidate, and is extremely time consuming to effectively complete with
multiple candidates. As such, the Committee appreciates the support and
patience of Castle Gold's shareholders. The Committee plans to
communicate to shareholders the final results of the SAR process at the
appropriate time.
Please note that final terms and conditions of any possible strategic
transaction with any of the foregoing candidates, including final price
and final transaction structure, have not been finalized into a mutually
acceptable definitive agreement. There can be no assurance that, as a
result of the SAR and the foregoing activities, a mutually acceptable
definitive agreement with another party will be reached, or that one
will occur. If a mutually acceptable definitive agreement for a
strategic transaction is reached with another party, such transaction
would be subject to a number of closing conditions which may or may not
be satisfied.
Forward Looking Statements
Certain statements in this press release constitute
"forward-looking" statements that involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Castle Gold to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. When used in
this news release, words such as "plans", "hope",
"encouraging", and "expects" and similar
expressions to the extent they relate to Castle Gold are intended to
identify forward-looking statements. There is no assurance that any
strategic transaction will be completed. Unless required by applicable
securities law, Castle Gold does not assume any obligation to update
forward-looking statements.
About Castle Gold
Castle Gold Corporation is a growth oriented gold producer with
projects focused in the America's. The Company owns a 100% interest in
the El Castillo gold mine in Mexico and a 50% interest in the El Sastre
gold mine in Guatemala. Castle Gold is also advancing exploration and
development work at its La Fortuna gold-silver-copper project in
Mexico.
For general inquiries, not related to confidential M&A related information, please contact: Thomas Atkins or Rory Quinn President and CEO Manager Investor and Public Relations Tel: 416 214 4809 or Toll Free: 1 866 646 3274 or by fax: 416 366-7421, email: info@castlegoldcorp.com or visit our website: www.castlegoldcorp.com. ----------------------------------------------------------- TSX-V Trading Symbol: CSG Total Shares Outstanding: 75.3MM Fully Diluted: 82.8MM 52-Week Trading Range: C$0.15 - $0.80 -----------------------------------------------------------
Neither the 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.
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