Aug. 18, 2010 (Filing Services Canada) -- MegaMoly Inc. (MGY - TSX Venture), is pleased to announce that the Company has, following a full evaluation of its current project portfolio and investment mandate, decided to embark on a shift in its strategy to realign the Company to focus on natural resource opportunities in South America.
The Company's board of directors executed a detailed evaluation of the current assets within Mega Moly and debated their probability of success in maximizing shareholder value. This evaluation included an examination of the current global molybdenum supply/demand scenario and forecasts of future pricing. As a result of this process, a determination was made that while the two molybdenum projects that are within the current Mega Moly portfolio have a reasonable chance of success the board felt that there were other, more attractive opportunities in the junior resource sector available with superior probability of success.
Accordingly, and with the board's full knowledge and support, over the course of the last six months the two major shareholders of Mega Moly, namely Pinetree Capital Ltd. (TSX:PNP) ("Pinetree") and Resinco Capital Partners Inc. (TSX:RIN) ("Resinco") have been exchanging ideas relative to creating a modified or entirely new direction for Mega Moly. During the course of those strategic consultations it became clear that there was significant interest in pursuing potential opportunities in South America and specifically Argentina, Chile and Peru. Both Pinetree and Resinco currently have investments in South America and have built up a strong network of advisors and consultants.
With the support of the Mega Moly board of directors the Company has begun some initial due diligence on projects which had been identified by certain advisors and deal promoters.
Over time the Company intends to assemble a portfolio of projects with short, medium and long term liquidity capabilities. The Company intends to take advantage of the vast array of natural resource exploitation opportunities in South America and plans to become a leading developer of assets on this exciting continent of South America through acquisition or partnerships.
As part of the re-structuring and realignment of the Company, shareholders will be asked to vote on resolutions at the upcoming annual general and special meeting. These resolutions will include electing a new slate of directors, changing the name of the Company and a consolidation of the common shares of the Company on a 5 for 1 basis.
The following people have been put forward in the Company's Management Information Circular as nominees for election as directors:
* John Icke, President and CEO, Resinco
* Philip Williams, VP Business Development, Pinetree
* Jon Lever, CFO, Resinco
* Richard Patricio, VP Legal & Corporate Affairs, Pinetree
* Hein Poulus, Partner, Stikeman Elliott LLP
* Peter Mullens, Director and Principal, Ironbark Pacific Pty Ltd.
The Company is also proposing to change its name to Terreno Resources Corp. Terreno, meaning "of the earth" in Spanish, represents the new focus on natural resource opportunity development in South America. If approved by shareholders, the name change will result in a change of branding to match the new name, communicating the new focus to shareholders and the market at large.
"The strategic plan for the Company is to build a broad portfolio of high quality market leading assets located throughout South America. The selection and development of these projects will be the responsibility of a team of experienced exploration and mining experts. Selection and recruitment of this team is underway and it is significant that we intend to appoint Peter Mullens, an internationally regarded geologist to the board to provide the Company with his guidance," commented John Icke, Interim CEO and Director of Mega Moly. "By calendar year end we expect to be in a strong organizational and financial position to take advantage of the new strategy."
On behalf of the Board of Directors
"John Icke"
Interim Chief Executive Officer & Director
For further information, please contact:
Nicola Street Capital
Tel: 604.569.0056
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.
Source: MegaMoly Inc. (MGY - TSX-V)
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