Brazauro closes arrangement with Eldorado Gold Corporation
Trading Symbol: BZO-TSX.V
HOUSTON, TX, July 20 /PRNewswire-FirstCall/ - Brazauro Resources Corporation ("Brazauro" or the "Company" TSX.V: BZO) announces that the previously announced plan of arrangement (the "Arrangement") with Eldorado Gold Corporation ("Eldorado" TSX:ELD, NYSE: EGO) closed today. Pursuant to the Arrangement, Eldorado acquired all of the outstanding common shares of Brazauro (the "Brazauro Shares"). Under the Arrangement, each Brazauro Share (other than shares held by Eldorado) was exchanged for 0.0675 of a common share of Eldorado, plus one third of a common share of TriStar Gold Inc. ("TriStar"), a new exploration company incorporated to hold certain Brazauro assets.
In addition, Eldorado provided C$10 million in funding to TriStar. The TriStar common shares are expected to commence trading on the TSX Venture Exchange on July 21, 2010.
All unexercised Brazauro options and warrants will be exercisable for common shares of Eldorado on identical terms, adjusted in respect of exercise price and number, using the same exchange ratio as for the Brazauro Shares.
The Arrangement was approved by the Brazauro securityholders at a meeting of Brazauro securityholders held on July 15, 2010 and received final approval by the British Columbia Supreme Court on July 16, 2010.
Neither 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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation which are not historical facts and are made pursuant to the "safe harbour" provisions under the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon the Company's reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause the Company's plans to change include uncertainties related to the satisfaction of the conditions required to complete the Arrangement; changes in demand for and price of gold and other commodities (such as fuel and electricity) and currencies; changes or disruptions in the securities markets; legislative, political or economic developments in Brazil; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of the company's projects; risks of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE Brazauro Resources Corp.
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