Mar 24, 2010
Merrex Gold Announces Share Dividend
HALIFAX, NOVA SCOTIA -- (Marketwire -- March 24, 2010) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex")(TSX Venture: MXI) announces a one-time dividend of 18,675,000 shares of Frontline Gold Corporation ("Frontline").
"Consistent with our stated intent, Merrex has declared a one-time dividend of 18,675,000 shares of Frontline," said Gregory Isenor, President and CEO of Merrex Gold. "Merrex common shareholders on the April 15, 2010 Record Date will receive one share of Frontline for each 4.5 shares (approximately) of Merrex. The actual certificates will be mailed on May 1, 2010 (the "Payment Date") allowing our transfer agent adequate time to determine all final dividend allocations. Furthermore, the four-month hold period on the Frontline shares expires May 1, 2010; therefore, all Frontline shares paid as a dividend will be free trading on the Payment Date. In addition, I want assure our shareholders that no adverse inference about Frontline or its Niaouleni Gold Project should be drawn by the distribution of the Frontline shares by Merrex. We consider the Niaouleni Gold Project to be a meritorious exploration project and would recommend that each Merrex shareholder review Frontline, inform themselves fully regarding the Niaouleni Gold Project and the on-going exploration program there, consider carefully their own investment parameters and consult with their professional advisors prior to taking any specific action regarding their Frontline shares. We also encourage new Frontline shareholders wanting to be kept advised of corporate developments to have their names added to the Frontline e-mail distribution list by contacting Frontline at [email protected]".
Dividend of Frontline Shares
A special, non-recurring, taxable dividend of a total of 18,675,000 common shares of Frontline will be paid to holders of Merrex common shares on the Record Date. This dividend represents approximately 39% of the issued capital of Frontline. The Record Date for the dividend is April 15, 2010. The common shares of Merrex will trade on an ex-dividend basis on April 13, 2010. The Payment Date for the dividend is May 1, 2010. It is anticipated that Merrex shareholders will receive one share of Frontline for each 4.5 Merrex common shares (approximately, subject to final adjustment) held on the Record Date. The final adjustment of the dividend ratio will be based upon the issued capital of Merrex on the Record Date. The issued capital of Merrex may change between today and the Record Date depending upon the number, if any, of outstanding in-the-money share purchase warrants and incentive stock options that may be exercised. No fractional shares will be distributed; rather any fractional share entitlement will be rounded either up or down to the nearest whole share, provided that not more than 18,675,000 common shares of Frontline will be distributed.
All Frontline dividend shares will be free trading on the Payment Date except for Frontline shares received by insiders of Frontline which will be subject to TSX escrow restrictions.
Frontline Gold Corporation holds the advanced stage Niaouleni Gold Project in southwest Mali (see www.frontlinegold.com).
Merrex is a Mali focused gold exploration company with experienced management, a solid exploration team, a prominent gold-producer as a partner and an expanding gold resource ... a winning combination offering investors an extraordinary opportunity.
Please visit our website at www.merrexgold.com for the most recent presentation.
On Behalf of the Board
Gregory Isenor, P.Geo.
President & CEO
Merrex Gold Inc.
1550 Bedford Highway
Suite 802, Sun Tower
Bedford, NS B4A 1E6
Tel.: (902) 832-5555
Fax: (902) 832-2223
Renmark Financial Communications Inc.
Jason Roy: [email protected]nancial.com
Barbara Komorowski: [email protected]
Tel.: (514) 939-3989 or (416) 644-2020
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and 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 market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
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.
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