Thumbs up for Catalpa-Lion merger

Catalpa Resources has ticked the final box in its goal to become a mid-tier gold producer, after the company's shareholders yesterday approved a merger with Lion Selection's gold assets.

The shareholders of Western Australian gold explorer Catalpa Resources yesterday approved the proposed merger with Lion Selection.

The merger will amalgamate Lion Selection’s 30% holding in Newcrest’s Cracow gold project with Catalpa’s 100,000 ounce per annum Edna May operation.

Catalpa now gains access to 30,000 ounces per annum from the Cracow joint venture to immediately become a gold producer.

Once Edna May is commissioned in 2010, the company will be able to produce a total of around 130,000 tonnes per annum.

Catalpa Resources managing director Bruce McFadzean said this was a significant milestone in the company’s journey to become a mid-tier gold producer.

“This is an exciting time for Catalpa and we are delighted by the continued strong support of our shareholders along the way,” he said.

Catalpa shareholders also approved the consolidation of the company’s shares based on an 11 for one ratio.

With a 46.9% holding, Lion is Catalpa’s major shareholder.

That company’s shareholders also approved the merger at an extraordinary general meeting yesterday.

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