Golden Share Mining Corporation has signed an amalgamation agreement which will see it would merge its business with Silvore Fox Minerals Corp, a Canadian junior explorer listed on the TSX Venture Exchange. The proposed merger seeks to leverage the input of Sinotech Minerals Exploration Co, a leading Chinese mineral exploration and development company.

Sinotech is a 50.03% shareholder of Beijing Donia Resources Co, a cornerstone investor in Silvore Fox, which acts as its overseas development arm with a focus on Canada. Sinotech sees the merged entity as an ideal platform to further develop its activities in exploration and development of precious metals in North America.

The parties intend to finalize a transaction under which Silvore Fox would merge with Golden Share on the basis of one share of the new company, Amalco, for each five existing shares of Golden Share and Silvore Fox. Both parties will seek approval of their respective shareholders at special meetings expected to be held in July 2013. The transaction also remains subject to the approval of the TSXV.

Amalco will retain the name Golden Share Mining Corp and its Board will be comprise four members  - two appointed by Silvore Fox (Ge Mao, vice president of Sinotech and general manager of Beijing Donia, as chairperson and Wenshan Zhang, chief geologist of Beijing Donia, as director) and two appointed by Golden Share (Philippe Giaro and Christian Guilbaud). The new management team will include Philippe Giaro as president and chief executive officer, Laurence Huss as vice-president exploration and Hua Gao as chief financial officer. Dr Jingbin Wang, chairman of the Board of Sinotech, will join Amalco’s Advisory Board.

Philippe Giaro says, “We are very pleased to enter into this transaction with the support of Silvore Fox’s cornerstone investor Beijing Donia, a subsidiary of Sinotech as well as our principal shareholder, Lake Shore Gold. Golden Share’s objective has always been to develop its precious metal projects in Canada and this transaction provides our team with a technically focused and financially very solid partner sharing our corporate objectives for the benefit of shareholders.

“Several meetings with Sinotech and Beijing Donia’s management teams in Canada and China as well as my recent visit of one of Sinotech’s operating mine in Northern China confirmed this common vision. It is equally important to note that, beyond our technical affinities, Beijing Donia and Sinotech share our Canadian mining culture through their corporate history with Canadian listed junior companies. They have notably recently been involved in the financing of Nickel North Exploration for which they also provide technical and corporate support. We look forward to further developing Golden Share with the support this new partner.”

Golden Share is developing a promising portfolio of properties in the greenstone belts of eastern Canada, namely in the Val d’Or-Malartic, Red Lake and Shebandowan areas.
www.goldenshare.ca

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