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TORONTO, Jan. 28 /CNW/ - Guyana Goldfields Inc. ("Guyana") (TSX: GUY) and Aranka Gold Inc. ("Aranka") (TSX-V: ARK) are pleased to announce today that the acquisition of Aranka by Guyana has been completed.
Pursuant to a plan of arrangement completed under the Business Corporations Act (Ontario), Aranka is now a wholly owned subsidiary of Guyana. The former shareholders of Aranka received an aggregate of 7,798,017 common shares of Guyana (representing approximately 13% of Guyana's outstanding common shares) in exchange for their Aranka common shares at an exchange basis of one common share of Guyana for every 3.25 common shares of Aranka. Following completion of the arrangement, Guyana has a total of 58,920,160 common shares issued and outstanding. Aranka's common shares will cease to be listed for trading on the TSX Venture Exchange after the close of trading on January 28, 2009.
In order to receive Guyana share certificates, former Aranka shareholders that held their Aranka shares registered in their names must complete the letter of transmittal which accompanied the Aranka information circular dated December 19, 2008 and deposit it, together with their Aranka shares certificates, with Equity Transfer and Trust Company. Complete instructions are set out in the information circular and the letter of transmittal. The information circular and a copy of the letter of transmittal are available on Aranka's SEDAR profile at www.sedar.com. Former Aranka shareholders who held their Aranka shares through intermediary banks or brokerage houses should contact their bank or broker to determine what action, if any, they need to take to receive their Guyana share certificates.
In connection with the acquisition of Aranka, Richard Williams has been appointed as a director of Guyana, replacing Robert Cudney who has resigned as a director of Guyana.
As a result of the arrangement, Mr. Patrick Sheridan, who is the President and Chief Executive officer of both companies, acquired an additional 1,793,225 common shares of Guyana and now owns or controls, directly or indirectly, an aggregate of 6,065,803 common shares of Guyana, representing approximately 10.3% on a non-diluted basis of the issued and outstanding common shares of Guyana and representing approximately 13.05% on a partially diluted basis, of the issued and outstanding common shares of Guyana when including the 1,865,950 options of Guyana held by Mr. Sheridan. Based on the closing trading price of the Guyana common shares on January 27, 2009, the common shares of Guyana acquired by Mr. Sheridan pursuant to the arrangement have a deemed value of $2.32 per Guyana share. The common shares of Guyana were acquired for investment purposes and Mr. Sheridan has no present intention to increase or decrease his shareholding in Guyana.
About Guyana
Guyana is a Canadian based mineral exploration company primarily focused on the exploration and development of gold deposits in the Guiana Shield of South America. The Guiana Shield is in the northern part of the Amazon Craton and covers parts of Guyana, Venezuela, Suriname, French Guyana and northern Brazil. Guyana holds advanced exploration projects in various stages of development and has been operating in Guyana continuously since 1996.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
%SEDAR: 00022477E