Business
Lion Energy Corp. (TSX-V: LEO), Southern Star Energy Inc. (OTC BB:SSEY) and Gold Star Resources Corp. (TSX-V: GXX) Announce Proposed Business Combination
Lion Energy Corp. (TSX-V: LEO), Southern Star Energy Inc. (OTC BB:SSEY) and Gold Star Resources Corp. (TSX-V: GXX) Announce Proposed Business Combination.
About this update from Simba Essel Energy Inc
[{"type":"text","content":"November 5, 2009: Lion Energy Corp. (“Lion”)(TSX-V: LEO), a Canadian exploration company focused on acquiring, exploring and developing oil and gas reserves in Central and East Africa, Southern Star Energy Inc. (“Southern”)(OTC BB:SSEY), a U.S.- based oil and gas exploration company with lease acreage properties in Louisiana, and Gold Star Resources Corp. (“Gold Star”)(TSX-V: GXX), a Canadian resource exploration company focused on the strategic acquisition and advancement of prospective oil and gas projects in West Africa, are pleased to announce that they have signed a non-binding letter of intent to complete a proposed business combination (the “Transaction”). Upon completion of the Transaction, the combined entity will be a mid-sized, well-capitalized company with domestic and international exploration operations, a seasoned management team, and a strong board of directors.“The collaboration of Lion, Southern and Gold Star combines an excellent portfolio of diverse African exploratory opportunities and a solid platform for growth in North America. This acquisition also brings significant talent to continue adding opportunity and value for our shareholders,” said David Gibbs, President and CEO of Southern. “The combined company will be focused on the acquisition of additional strategic assets in North America so we can build a strong foundation of cash flow and stable growth opportunities. This will provide solid returns and fund and expand the combined company’s high potential exploration programs in Africa.”It is anticipated that Lion will issue approximately 40 million of its common shares, with approximately 26 million being issued to the shareholders of Southern and approximately 14 million being issued to the shareholders of Gold Star in exchange for all of the outstanding shares of Southern and Gold Star.The Transaction is subject to the completion of confirmatory financial and legal due diligence, definitive documentation, regulatory approvals, court approval and approval of the shareholders of each of Lion, Gold Star and Southern.The securities offered will not be registered under the United States Securities Act of 1933, as amended (the “Act”) and may not be offered or sold in the United States absent re...