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The TSX Venture Exchange required a working capital infusion of $4M into the combined company as the last condition in order to grant its approval to the merger. Contrary to what BacTech states in its March 19th, 2008 release about the termination, it had been mutually decided that due to the current equity market conditions that SGC would raise $3M of equity financing and BacTech would raise $1M in flow-through financing.
On this basis, subscription agreements for the fund raising were drawn up, however BacTech recently advised it was not prepared to announce and proceed with its financing at this time, leading to the termination.
Scorpio Mining maintains its intention to spin off Scorpio Gold as a separately financed public company, and it will continue to examine alternative means of financing and listing Scorpio Gold in the public markets. -- www.cnxmarketlink.com
Posted March 21st, 2008 by ruzik_tuzik
