Southern Arc and Dundee Corporation Complete $12 Million Strategic Investment in Eagle Hill Exploration Corporation
Marketwired
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug 15, 2013) - Southern Arc Minerals Inc. (TSX VENTURE:SA)(SOACF) ("Southern Arc" or "the Company") is pleased to announce that it has received shareholder approval to complete a strategic investment and acquire a 26.14% interest in Eagle Hill Exploration Corporation ("Eagle Hill") (TSX VENTURE:EAG), as previously announced on July 11, 2013. Southern Arc invested $7,324,050 to acquire 97,654,000 units of Eagle Hill by way of private placement at a price of $0.075 per unit. Each unit comprises one common share of Eagle Hill and one half share purchase warrant, with each whole warrant entitling the holder to acquire a further common share of Eagle Hill at a price of $0.10 per share for a period of four years. Should Southern Arc choose to exercise all of its warrants, the Company would hold a 30.74% interest in Eagle Hill on a fully diluted basis, and be the company's largest shareholder.
Dundee Corporation (DC-A.TO) also participated in the private placement by investing $4,675,950 to acquire an additional 62,346,000 units of Eagle Hill, thereby increasing its ownership of Eagle Hill from 18.8% to 26.14%.
Following Eagle Hill's annual general meeting and Board meeting, the Eagle Hill Board of Directors comprises five directors: John Proust - Chairman, Dr. Michael Andrews, David Christie, Carl Calandra and Robert Parsons. Bradley Kitchen and Gerald Ruth have stepped down from the Board. Mr. Kitchen and Mr. Ruth have been Eagle Hill directors since 2006 and 2010, respectively, and their contributions are appreciated.
Eagle Hill's Board of Directors subsequently made the following management appointments:
John Proust - Interim CEO
Dr. Michael Andrews - Interim President
Brian Richardson - Interim CFO
Dr. Jean-Philippe Desrochers - Vice President, Exploration
Eagle Hill's Board of Directors promoted Dr. Jean-Philippe Desrochers to the position of Vice President, Exploration. Dr. Desrochers has been overseeing the Windfall Lake property since 2005. He joined Eagle Hill as Chief Geologist in 2010 and has been instrumental in the development of Eagle Hill's mineral resource. Technical representatives from Southern Arc and Dundee will work with Dr. Desrochers to plan and execute an exploration program for the Windfall Lake Gold Project. Current plans for the property include a $5 million exploration program with the objective of expanding the existing resource. More information regarding exploration and development plans will be provided shortly.
The Eagle Hill Board of Directors will conduct an executive search to permanently fill the positions of CEO, President and CFO.
"Eagle Hill is now well funded, with the technical and business expertise required to unlock the full potential of the Windfall Lake Gold Project," said John Proust, Chairman and CEO of Southern Arc. "Windfall Lake is exactly the type of property we've been looking for. It's high-grade, has a substantial resource that's open for expansion, and is located in a well-recognized mining-friendly jurisdiction. We look forward to commencing drilling in September and working with Dundee and Eagle Hill to rapidly developing the property."
On behalf of the Board of Southern Arc Minerals Inc.
John Proust, Chairman & Chief Executive Officer
About Southern Arc Minerals
Southern Arc Minerals Inc. is a Canadian mineral exploration company focused on gold and copper-gold exploration. The Company's key exploration property is its West Lombok project, with several gold-rich copper porphyry and epithermal gold vein prospects. Southern Arc is listed on the TSX Venture Exchange under the symbol SA and on the OTCQX International under the symbol SOACF. More information is available at www.southernarcminerals.com or by emailing info@southernarcminerals.com.
About Dundee Corporation
Dundee Corporation is a Canadian holding company listed on the TSX under the symbol "DC.A". Through its operating subsidiaries, including Goodman & Company, Investment Counsel Inc., Dundee is engaged in diverse business activities in the areas of its core competencies, including investment advisory, corporate finance and private equity investment in real estate and infrastructure, energy, resources and agriculture. Dundee holds, directly and indirectly, a portfolio of investments mostly in these core areas, as well as other select investments in both publicly listed and private companies.
About Eagle Hill Exploration
Eagle Hill Exploration Corporation is a Canadian mineral exploration company focused on the exploration and development of the high-grade Windfall Lake Gold Deposit, located between Val-d'Or and Chibougamau in Quebec. Southern Arc Minerals and Dundee Corporation each hold a 26.14% interest in Eagle Hill and recently invested an aggregate of $12 million to fund an aggressive exploration program. More information is available on Eagle Hill's website at www.eaglehillexploration.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of any of the words "will", "plan", "objective", "unlock" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. This document contains forward-looking statements and assumptions pertaining to the following: uncertainty involving resource estimates and the ability to extract those resources economically, or at all; uncertainty involving drilling programs and the Company's ability to expand and upgrade existing resource estimates; the regulatory process and actions; the need to work with local communities and authorities to advance the properties; the need to work with Dundee and Eagle Hill to advance the properties; technical issues; new legislation; competitive factors and conditions; uncertainties resulting from potential delays or changes in plans; the occurrence of unexpected events; and the Company's ability to execute and implement future plans. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors, including uncertainty related to drill results and the inclusion of drill results in future resource estimates for the property. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.
