TORONTO, ONTARIO - (July 16, 2009) - CASTLE GOLD CORPORATION ("Castle Gold") (TSX VENTURE:CSG) is pleased to provide a further update from the Mergers & Acquisitions Committee ("Committee") on the strategic alternative review ("SAR") process.
The calibre of the final candidates selected is very high and the advancements achieved, in the final stage of the SAR process, are very encouraging. Prior to the recent deadline for submission of final binding offers, two of the candidates requested more time to complete their detailed technical and financial evaluations in consideration of potentially submitting a final, binding offer or definitive agreement. The Committee met to consider these requests and decided to grant them. The Committee believes that granting the requested extension to permit completion of the remaining detailed due diligence, provides the greatest potential benefit for Castle Gold shareholders.
The Committee is pleased with the discussions, negotiations, progress, and submissions held with and received from the selected candidates to date. However, the Committee is not able to announce any specifics on the advancements made in this regard for confidentiality reasons. The Committee does not plan to provide a further M&A update until there is either an announce able event, such as the selection and execution of one final definitive agreement for a strategic transaction, or, alternatively, the Committee elects to proceed with its alternate aggressive organic growth strategy for maximising shareholder value as discussed in our most recent news release.
The Committee will continue to proceed with patience and vigilance, actively working with the candidates to advance their final evaluations. This work is very time consuming to complete with one candidate, and is extremely time consuming to effectively complete with multiple candidates. As such, the Committee appreciates the support and patience of Castle Gold's shareholders. The Committee plans to communicate to shareholders the final results of the SAR process at the appropriate time.
Please note that final terms and conditions of any possible strategic transaction with any of the foregoing candidates, including final price and final transaction structure, have not been finalized into a mutually acceptable definitive agreement. There can be no assurance that, as a result of the SAR and the foregoing activities, a mutually acceptable definitive agreement with another party will be reached, or that one will occur. If a mutually acceptable definitive agreement for a strategic transaction is reached with another party, such transaction would be subject to a number of closing conditions which may or may not be satisfied.
Forward Looking Statements
Certain statements in this press release constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Castle Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, words such as "plans", "hope", "encouraging", and "expects" and similar expressions to the extent they relate to Castle Gold are intended to identify forward-looking statements. There is no assurance that any strategic transaction will be completed. Unless required by applicable securities law, Castle Gold does not assume any obligation to update forward-looking statements.
About Castle Gold
Castle Gold Corporation is a growth oriented gold producer with projects focused in the America's. The Company owns a 100% interest in the El Castillo gold mine in Mexico and a 50% interest in the El Sastre gold mine in Guatemala. Castle Gold is also advancing exploration and development work at its La Fortuna gold-silver-copper project in Mexico.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION:
Castle Gold Corporation
Thomas Atkins
President and CEO
416 214 4809 or Toll Free: 1 866 646 3274
Fax: 416 366 7421
or
Castle Gold Corporation
Rory Quinn
Manager Investor and Public Relations
416 214 4809 or Toll Free: 1 866 646 3274
Fax: 416 366 7421
info@castlegoldcorp.com
http://www.castlegoldcorp.com/" target="_parent">www.castlegoldcorp.com
