Ashton Mining of Canada Inc.

Ashton Mining of Canada Inc.

November 21, 2006 17:30 ET

Ashton Mining of Canada Inc.: Independent Review Committee Established to Evaluate Stornoway Amalgamation Proposal

Special Meeting of Shareholders to be rescheduled for January 2007

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 21, 2006) - Ashton Mining of Canada Inc. ("Ashton" or the "Corporation") (TSX:ACA) announces the establishment of an Independent Review Committee of the Board of Directors comprised of David De Witt (Chair), Marcel de Groot and Brian C. Irwin (the "Committee").

As reported on October 19, 2006, Stornoway Diamond Corporation ("Stornoway"), the holder of approximately 75.6 per cent of Ashton's outstanding common shares, has requisitioned a special meeting of shareholders for the purpose of considering a plan of arrangement or amalgamation involving the Corporation and Stornoway and/or an affiliate of Stornoway. Stornoway has subsequently advised that its proposed transaction would proceed by way of an amalgamation of Ashton and a wholly owned subsidiary of Stornoway.

The principal elements of the Committee's mandate are to review and evaluate the proposed transaction and to supervise the negotiation of its terms. In turn, the Committee will make recommendations to the Board of Directors in relation to the proposed transaction and in relation to the information circular that the Corporation will distribute in preparation for the special meeting of shareholders. To assist in this process, the Committee has retained Davis & Company as its independent legal counsel and is currently engaging an independent financial advisor.

The special meeting of shareholders, which was originally scheduled for Tuesday, December 19, 2006, will be postponed until January 2007. Further details, including the revised meeting date and amended record date, will be announced shortly.

Contact Information

  • Ashton Mining of Canada Inc.
    Alessandro Bitelli
    Vice President, Finance
    (604) 983-7750
    Ashton Mining of Canada Inc.
    Ariel Bowers
    Investor Relations
    (604) 983-7750
    (604) 987-7107 (FAX)