Levon Resources Ltd LVN:CA and Valley High Ventures Ltd VHV:CA announced that they have entered into an agreement whereby Levon will acquire all of the outstanding shares of Valley High. Under the plan of arrangement Valley High shareholders will receive one share of Levon and 0.125 of a share in a new exploration company, SpinCo, for each Valley High share. On completion of the transaction, Valley High shareholders will hold approximately 43% and Levon shareholders 57% of the outstanding shares of Levon on a fully-diluted basis. Valley High shareholders will own 100% of the SpinCo shares and SpinCo will own all of Valley High’s exploration assets outside of the Cordero Project and will have $1.8 million in cash.
Levon President/CEO Ron Tremblay stated, “This acquisition consolidates ownership of our flagship Cordero Project and creates a dominant position in the Cordero Porphyry Belt. This is a strategic combination that will enhance long-term shareholder value and consolidate ownership of the Cordero Project in Mexico into one public company. We will continue to aggressively pursue exploration on the property and target completing a 43-101 resource estimate in Q2 2011 and a preliminary economic assessment by Q3 2011. The transaction leaves Levon well funded to complete the 59,000 metre Phase 3 drill program. We look forward to having the Valley High shareholders in Levon.”
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or Valley High Ventures Ltd
by Ted Niles