Franconia Minerals Shareholders Approve Arrangement With Duluth MetalsBy Duluth Metals Limited, PRNE
Wednesday, March 2, 2011
TORONTO, March 3, 2011 - Duluth Metals Limited ("Duluth") (TSX: DM) (TSX: DM.U) and Franconia
Minerals Corporation ("Franconia") (TSX: FRA) are pleased to announce that
Franconia shareholders have approved the previously announced plan of
arrangement involving Duluth and Franconia (the "Arrangement").
At the special meeting of Franconia shareholders held earlier today, the
Arrangement was approved by 88% of the votes cast by shareholders of
Franconia represented in person or by proxy at the special meeting.
The completion of the Arrangement remains subject to the approval of the
Court of Queen's Bench of Alberta. The hearing is to be held in Calgary,
Alberta on March 4, 2011 at 2:00 p.m. If approved and all other conditions to
the Arrangement are satisfied, Duluth will acquire all of the outstanding
common shares of Franconia and Franconia will become a wholly-owned
subsidiary of Duluth. Franconia's assets are expected to be rolled into Twin
Metals Minnesota LLC, a Duluth (60%) and Antofagasta plc (40%) joint venture.
The common shares of Franconia are expected to be delisted from the
Toronto Stock Exchange (the "TSX") at the close of trading on or about two
business days after the closing of the Arrangement. The common shares of
Duluth issued under the Arrangement are expected to be listed for trading on
the TSX at the opening of trading on or about the third business day after
the closing of the Arrangement.
Closing of the Arrangement is expected to occur on March 7, 2011.
Further information regarding the Arrangement may be found in the
information circular and proxy statement of Franconia dated February 3, 2011
in connection with the special meeting of Franconia shareholders which is
available under Franconia's profile at www.sedar.com.
About Duluth Metals Limited
Duluth Metals Limited is committed to acquiring, exploring and developing
copper, nickel and platinum group metal (PGM) deposits. Duluth Metals has a
joint venture with Antofagasta plc on the Nokomis Project, located within the
rapidly emerging Duluth Complex mining camp in north-eastern Minnesota. The
Duluth Complex hosts one of the world's largest undeveloped repositories of
copper, nickel and PGMs, including the world's third largest accumulation of
nickel sulphides, and one of the world's largest accumulations of
polymetallic copper and platinum group metals. Aside from the joint venture,
Duluth Metals retains a 100% position on approximately 31,000 acres of
mineral interests on exploration properties adjacent to and nearby the
Nokomis joint venture.
About Twin Metals Minnesota LLC
Twin Metals Minnesota LLC is a new joint venture company, which is 60%
owned by Duluth Metals and 40% by Antofagasta plc. The joint venture's
principal asset is called the Nokomis Project, located within the Duluth
Complex mining camp in north-eastern Minnesota.
About Franconia Minerals Corporation
Franconia Minerals Corporation is currently focused on the development of
the Duluth Complex copper-nickel-platinum-palladium project - consisting of
the Birch Lake, Maturi and Spruce Road deposits - in this highly prospective
region of north-eastern Minnesota. Underground mining at Birch Lake will
minimize the surface impact of the operation. Also, storage of mine wastes
underground would further minimize the surface impact. Additional resources
at the Birch Lake project include Inferred Resources at the Maturi deposit
(see news release of September 6, 2006) and at the Spruce Road deposit (see
news release of Franconia dated December 3, 2007). Independent reports
prepared to NI 43-101 standards by Scott Wilson RPA are available at
www.SEDAR.com and www.franconiaminerals.com.
This document may contain forward-looking statements (including
"forward-looking statements" within the meaning of the US Private Securities
Litigation Reform Act of 1995) relating to Duluth and Franconia's operations
or to the environment in which they operate. Such statements are based on
operations, estimates, forecasts and projections. They are not guarantees of
future performance and involve risks and uncertainties that are difficult to
predict and may be beyond Duluth and Franconia's control. A number of
important factors could cause actual outcomes and results to differ
materially from those expressed in forward-looking statements, including
those set forth in other public filings. In addition, such statements relate
to the date on which they are made. Consequently, undue reliance should not
be placed on such forward-looking statements. Duluth and Franconia disclaim
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, save and except as may be required by applicable securities laws.
For further information:
Mara Strazdins Vern Baker Director of Corporate Communications President Telephone: +1(416)369-1500 ext. 222 Telephone: +1(651)389-9990 Email: firstname.lastname@example.org Email: email@example.com
Greg Taylor Telephone: +1(905)337-7673 Email: firstname.lastname@example.org Webpage: www.franconiaminerals.com or Kingsdale Shareholder Services Inc., Franconia's proxy solicitation agent and information agent and depositary, by (i) telephone (toll-free in North American at +1-866-481-2532, or if outside North America, +1(416)867-2272; or (ii) email at email@example.com
Mara Strazdins, Director of Corporate Communications, Telephone: +1(416)369-1500 ext. 222, Email: mstrazdins at duluthmetals.com Vern Baker, President, Telephone: +1(651)389-9990, Email: vbaker at duluthmetals.com Greg Taylor, Telephone: +1(905)337-7673, Email: gtaylor at franconiaminerals.com Kingsdale Shareholder Services Inc., Franconia's proxy solicitation agent and information agent and depositary, by (i) telephone (toll-free in North American at +1-866-481-2532, or if outside North America, +1(416)867-2272; or (ii) email at contactus at kingsdaleshareholder.com
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