Thistle Announces Results of General Meeting

    TORONTO, March 19 /CNW/ - Thistle Mining Inc ("Thistle") (AIM:TMG) is
pleased to announce that at a special meeting held on March 16, 2007 the
shareholders of Thistle approved the acquisition of 100% of the shares of
Philippine Gold Ltd, a wholly-owned subsidiary of Thistle, and Thistle's other
interests in the Masbate gold project by CGA Mining Limited ("CGA") (ASX: CGX)
(the "Transaction") subject to the terms and conditions set out in the
original agreement dated January 31, 2007 and as amended on March 15, 2007
("SPA"). A total of 70.9% and 0.2% of Thistle shareholders voted for and
against the share resolution respectively. On March 16, 2007 CGA shareholders
also approved this transaction.
    Pursuant to the SPA, the consideration payable by the Purchaser is, in
aggregate, US$51 million (the "Purchase Consideration") of which US$21 million
is payable in ordinary shares of CGA (the "CGA Shares"). The issue price of
the CGA Shares is fixed at A$0.65 per CGA Share, provided that the volume
weighted average price ("VWAP") of the CGA Shares is not less than A$0.60 per
share in the 10 consecutive trading days immediately prior to the completion
date of the Transaction.
    The transaction is expected to close later today.
    As at the close of business in Australia on March 16, 2007, the 10 Day
VWAP for the CGA Shares was approximately A$0.6183 and the exchange rate was
A$0.7882 per US $. Assuming that the transaction is completed later today,
under the pricing formula Thistle will receive 40,985,538 CGA Shares worth
$20.7 million using the closing price of CGA shares on Friday March 16, 2007.
This represents an approximate 25.4% interest in CGA.
    Lord Lang of Monkton, Thistle's Chairman, said, "We are pleased with the
approval from shareholders which will allow us to complete the transaction
with CGA. The transaction is accretive to Thistle shareholders and will enable
us to pay back some $27 million of debt to our creditors and strengthen our
balance sheet. We can also now focus on returning the President Steyn Gold
Mine in South Africa to sustained profitability and apply our minds to
restructuring the balance sheet."

    This news release contains forward-looking statements with the meaning of
applicable securities laws relating to the Company's objectives, strategies to
achieve these objectives, future cash flow and financing requirements, and
similar statements concerning anticipated future events, results,
circumstances, performance or expectations that are not historical facts. Such
forward-looking statements reflect the Company's current beliefs and are based
on information currently available to management. These statements are not
guarantees of future performance and are based on the Company's estimates and
assumptions that are subject to risk and uncertainties inherent in the
business of the Company including those discussed in the Company's materials
filed with the Canadian securities regulatory authorities from time to time,
which could cause the actual results and performance of the Company to differ
materially from the forward-looking statements contained in this news release.
Those risks and uncertainties include, among other things, risks related to:
the mining industry (including operational risks in exploration development
and production; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainties involved in
the discovery and delineation of mineral deposits, resources or reserves; the
uncertainty of mineral resource and mineral reserve estimates and the ability
to economically exploit mineral resources and mineral reserves; the
uncertainty of estimates and projections in relation to production, costs and
expenses; the uncertainty surrounding the ability of the Company to obtain all
permits, consents and authorizations required for its operations and
activities; competition for the acquisition, exploration and development of
mineral interests; and health and safety and environmental risks), the risk of
gold and other commodity price and foreign exchange rate fluctuations; the
ability of the Company to fund the capital and operating expenses necessary to
achieve the business objectives of the Company; the uncertainty associated
with commercial negotiations and negotiating with foreign governments; the
risks associated with international business activities; the dependence on key
personnel; the ability to access capital markets; the indebtedness of the
Company; and labor relations matters. Material factors or assumptions that
were applied in drawing a conclusion or making an estimate set out in the
forward-looking statements include that the general economy remains stable,
the demand and price of gold continues to increase and the Rand remains strong
against the US$. It is also assumed that there will be no major disruptions in
production including failure of infrastructure, seismic activity, underground
fires and labor unrest. The Company cautions that this list of factors is not
exhaustive. Although the forward-looking statements contained in this news
release are based upon what the Company believes are reasonable assumptions,
there can be no assurance that actual results will be consistent with these
forward-looking statements. All forward-looking statements in this news
release are qualified by these cautionary statements. These forward-looking
statements are made as of the date hereof and the Company, except as required
by applicable law, assumes no obligation to update or revise them to reflect
new information or the occurrence of future events or circumstances.

For further information:

For further information: Andy Graetz, Chief Financial Officer at + 27 82
929 5562 or email to; or Gerry Beaney, Grant Thornton
Corporate Finance at +44 (0) 207 383 5100

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890