Business
Guyana Goldfields Inc. to acquire Aranka Gold Inc.
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOE...
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[{"type":"text","content":"\n\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.\nNEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES\nDESCRIBED HEREIN/\n\n\nTORONTO, Dec. 4 /CNW/ - Guyana Goldfields Inc. ("Guyana") (TSX: GUY) and\nAranka Gold Inc. ("Aranka") (TSX-V: ARK) are pleased to announce today that\nthey have entered into a binding letter agreement, pursuant to which Guyana\nwill acquire all of the issued and outstanding common shares of Aranka by way\nof court approved plan of arrangement (the "Arrangement"). Each of the\ncompanies set up independent committees to assess and review the terms of the\nArrangement and to make recommendations to the board of directors of each of\nthe respective companies. The independent committees of both companies\nunanimously recommended that their respective board of directors approve the\nentering into of the binding letter agreement.\n\n\nPursuant to the Arrangement, shareholders of Aranka will receive one\ncommon share of Guyana in exchange for every 3.25 common shares of Aranka. All\nof the outstanding 1,700,000 options of Aranka will be cancelled and the\noption plan will be terminated. The consideration to be received by the Aranka\nshareholders under the Arrangement represents a premium of approximately 15.8%\nover the weighted average closing price of the Aranka common shares on the\nTSXV for the 20 trading days ending on December 2, 2008 (based on the weighted\naverage closing price of the Guyana shares on the TSX for the 20 trading days\nending December 2, 2008).\n\n\nBased on the current 51,122,143 issued and outstanding common shares of\nGuyana (on a non-diluted basis) and the current 25,343,556 issued and\noutstanding common shares of Aranka (on a non-diluted basis), the number of\ncommon shares of Guyana following completion of the Arrangement (on a\nnon-diluted basis) is expected to be 58,920,160, with current Guyana\nshareholders owning 87% of Guyana (on a non-diluted basis) and current Aranka\nshareholders owning 13% of Guyana (on a non-diluted basis).\n\n\nGuyana and Aranka are currently 50/50 joint venture partners on most of\nAranka's properties that are located in Guyana. Mr. Patrick Sheridan is the\nPresident and Chief Executive Officer of both companies, and a control person\n(within the meaning of securities laws) of ...