Union gold & SPE

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a6dyl

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Union gold & SPE

posted on Aug 09, 2008 10:43AM

Just found this on IV and thought it may be of interest to the board. Regardless of what it says I reckon it is SPE failure at Shoal Point that scuppered this deal. Thanks to Stgo not me.

union gold/SPE merger nixed

Union Gold nixes proposed merger with Shoal Point Energy Ltd.
August 8, 2008 - 18:20

By: THE CANADIAN PRESS

CALGARY - Junior miner Union Gold Inc. (TSXV:UN) has nixed a proposed deal to merge with Shoal Point Energy Ltd., a privately owned oil and gas exploration company.

Union said Friday it had exercised its right to cancel the agreement with Shoal Point Energy, that would have resulted in a reverse take-over of Union, because Shoal failed to secure expressions of support from at least 55 per cent of its securityholders.

"Although a foundation for the reverse take-over was established," Shoal wasn't able to reach that condition within the time frame agreed upon, Union said.

Union Gold will also seek repayment of a $1.6-million loan it advanced to Shoal and became immediately repayable once the deal was terminated.

Trading in Union's securities will resume on the TSX Venture Exchange on Aug. 1