RENO, NEV., June 28 /CNW/ - Meridian Gold Inc. ("Meridian Gold" or the
"Company") (TSX:MNG) (NYSE: MDG) notes the announcement by Yamana Gold Inc.
("Yamana") that it intends to make an offer to acquire 100% of the outstanding
shares of Meridian Gold. No formal offer has yet been commenced. In the same
announcement, Yamana also indicated that it has entered into a business
combination agreement with Northern Orion Resources Inc. which is conditional
upon the acquisition of 66 2/3% of the shares of Meridian Gold by Yamana.
The Board of Directors of Meridian Gold will consider this announcement
as well as any formal offer actually made. Until the Company completes its
review, it will not comment further or speculate as to any future course of
action it might take.
Goldman, Sachs & Co. and BMO Capital Markets are acting as financial
advisors to the Company. Canadian legal counsel to the Company is Fraser
Milner Casgrain LLP.
About Meridian Gold
A unique mid-tier gold producer, with world-class mining operations in
Chile and Nevada and a pipeline of promising exploration projects throughout
the Americas, Meridian's success to date has been based on grassroots gold
discoveries and a low-cost strategy, resulting in a better approach to adding
value and balancing growth. Meridian strives to be "The Premier Value Gold
Mining Company," while building a better future for all of its stakeholders.
Certain statements in this press release constitute "forward-looking
statements" within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995 and Canadian securities legislation. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the
Company, or other future events, including forecast production, earnings and
cash flows, to be materially different from any future results, performance or
achievements or other events expressly or implicitly predicted by such
forward-looking statements. When used herein, words such as "anticipate",
"estimate", "believe", "expect", "predict", "plan", "should", "may", "could"
and other similar expressions are intended to identify forward-looking
statements. Such risks, uncertainties and other factors include those set
forth in the Company's Annual Information Form and other periodic filings.
Important factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements include, but are
not limited to, factors associated with fluctuations in the market price of
precious metals, changes in the dollar exchange rate, mining industry risks,
uncertainty of title to properties, risk associated with foreign operations,
environmental risks and hazards, proposed legislation affecting the mining
industry, litigation, governmental regulation of the mining industry,
properties without known reserves, uncertainty as to calculations of reserves,
mineral deposits and grades, requirement of additional financing, uninsured
risks, risk of impairment of assets, risk of hedging strategies, competition,
and dependence on key management personnel. Such information contained herein
represents management's best judgment as of the date hereof based on
information currently available.
The Company's filings with the securities regulatory authorities in
Canada are available at www.sedar.com and its filings with the U.S. Securities
and Exchange Commission are available at www.sec.gov through EDGAR.
For further information:
For further information: Investor Relations: Meridian Gold Inc. Peter
Dougherty, 775-850-3765 Vice President, Finance and Chief Financial Officer
email@example.com or Media Relations: Sard Verbinnen & Co. Dan
Gagnier, 212-687-8080 Paul Kranhold, 415-618-8750