Union Gold Inc.

August 08, 2008 16:53 ET

Union Gold Inc. Terminates Proposed Merger With Shoal Point Energy Ltd.

CALGARY, ALBERTA--(Marketwire - Aug. 8, 2008) - UNION GOLD INC. (TSX VENTURE:UN) ("Union"), a TSX Venture Exchange listed Company, announced today that it has exercised its right to terminate the definitive agreement by and between Union and Shoal Point Energy Ltd. dated June 24, 2008, providing for a reverse take-over of Union (the "Agreement"). The Agreement permitted, among other things, Union to terminate the Agreement on the basis of a condition precedent that Shoal Point Energy Ltd. will secure expressions of support from at least 55% of its securityholders. Although a foundation for the reverse take-over was established, Shoal Point Energy Ltd. was unable to meet the requirement of the condition precedent within the time frame agreed upon. Upon termination of the Agreement, the loan advanced to Shoal Point Energy Ltd. in the amount of $1.6 million dollars became immediately repayable. Union has demanded immediate repayment of the loan in full. Union stated that it intends to vigorously enforce its rights under its agreement with Shoal Point Energy Ltd. The TSX Venture Exchange advised that trading in Union's securities will resume on August 12, 2008.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Union Gold Inc.
    Sigrid I. Ades
    (416) 364-0042 or 1-800-442-0824
    (416) 364-2630 (FAX)
    Email: thebeckergroup@bellnet.ca