Scorpio Gold Corporation Signs Definitive Agreement for Merger with BacTech and Moves Forwards Towards Listing



    TSX:SPM

    VANCOUVER, Oct. 30 /CNW/ - Scorpio Mining Corporation (TSX:SPM) is
pleased to announce that its 93% owned subsidiary, Scorpio Gold Corporation
and BacTech Mining Corporation ("BacTech") have completed their respective due
diligence reviews for the proposed merger between the two companies. As a
result, the parties entered into a definitive merger agreement ("Definitive
Agreement") on October 26, 2007.
    BacTech will now call a meeting of shareholders to vote on the merger and
related matters. BacTech has secured expressions of support for the merger
from over 40% of its shareholders.
    Pursuant to the terms of the Definitive Agreement, BacTech will issue 2.6
common shares for each common share of Scorpio Gold outstanding and it is
anticipated that in connection with the transaction BacTech will change its
name to Scorpio Gold Corporation. The merger will result in Scorpio Mining
Corporation becoming the controlling shareholder of the new company.
    The combined company will hold interests in two past producing gold mines
in Nova Scotia, a polymetallic exploration project in the Gaspe, Quebec as
well as additional projects under evaluation by BacTech and Scorpio Gold
Corporation.
    Peter J. Hawley, Chairman, CEO comments, "All parties involved are very
excited with this business combination, especially the world wide application
of BacTech's bioleaching technology which is environmentally friendly and able
to recover difficult metals, as already demonstrated though use of the
technology in China and Mexico. During my recent travels I was quite surprised
at the interest and support the European financial community expressed
concerning the usage of the BacTech technology combined with the track record
of Scorpio as an aggressive, fast moving mining company. We will aggressively
pursue not only start up operations with gold credits but look at the usages
of the technology in countries that have serious environmental concerns. In
that Scorpio Mining will be the majority shareholder of the merged company, it
is expected that its expertise and knowledge in México will be advantageous to
allow the new company to be able to exploit its cutting edge technology in
that country and elsewhere."

    BacTech Profile

    BacTech has developed and patented bacterial oxidation technology for the
treatment of refractory ores and complex "dirty" concentrates to enhance the
recovery of gold, silver and base metals, is environmentally friendly and is
one of two companies world wide with a proven commercial track record for
bioleaching, the other being Goldfields. BacTech has successfully commissioned
three bioleach plants for gold, such as the China Laizhou project of Golden
China Resources, which is currently being taken over by Sino Gold Mining and
is undergoing a current expansion to 150,000 ounces of gold per year and
accepts concentrates from 13 different mines in China. In addition, BacTech
demonstrated its technology, in the selective recovery of base metals from
complex sulphide concentrates in a joint venture project with Industrias
Penoles de C.V of Mexico with a plant set up in Monterrey where dirty
copper-zinc-lead-gold and silver concentrates from four mines in Mexico were
processed by the technology resulting in selective recoveries of copper and
zinc by SX-EW methods and selective recoveries of gold and silver dore.
    For further information on the Company and the Nuestra Senora project
plus the Nova Scotia and Quebec assets of Scorpio Gold please visit the
Scorpio Mining web site at: www.scorpiomining.com. President, Mr. D. Roger
Scammell, PGeo, is the Company's Qualified Person for the technical
information in this news release.

    ON BEHALF OF SCORPIO MINING CORPORATION

    Peter J. Hawley
    Chairman & CEO

    This news release includes certain statements that may be deemed
"forward-looking statements". All statements in this news release, other than
statements of historical facts, that address future exploration activities,
planned use of bioleaching technology, completion of the planned merger
transaction and similar events or developments that the Company expects, are
forward looking statements. Although the Company believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and
actual results or developments may differ materially from those in
forward-looking statements. Factors that could cause actual results to differ
materially from those in forward-looking statements include metal prices,
exploration success, continued availability of capital and financing, and
general economic, market or business conditions.




For further information:

For further information: Glenn Little, Jackson Little Holdings Ltd:
(604) 930-4375, 1-888-930-4375, Email: jlconsulting@telus.net; Rich Kaiser,
YES International: 1-800-631-8127, 001-757-306-6090 (outside North America),
Email: yes@yesinternational.com

Organization Profile

Scorpio Mining Corporation

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