TORONTO, ONTARIO--(Marketwired - May 30, 2013) - Buena Vista Gold Inc. (BVG or the "Company"), a privately held Ontario company, announces that it has withdrawn from the proposed merger with Ituna Capital Corp. (Ituna). The merger was announced by Ituna in a press release dated October 30, 2012. In conjunction with the merger withdrawal, BVG will unwind the 1 for 2 share roll back it had agreed to as part of the merger and will commence a financing of up to $1,500,000 to fund the activities of the Company.
A non-binding Letter of Intent (LOI) was entered into between the Company and Ituna (the "Parties") on September 30, 2012. In the LOI, the Parties contemplated that, concurrently with the merger and graduation of Ituna to Tier 2 on the TSX Venture exchange, a financing of a minimum of $1,000,000 and up to $2,000,000 would be completed. Subsequently, and at the request of Ituna, BVG agreed to; roll back of the Company's share count on a 1 for 2 basis and, cancel certain other warrants and stock options.
On May 23, 2013, Ituna informed the Company it was unable to achieve the minimum required financing of $1,000,000 and that the Board of Directors of Ituna had voted to terminate the merger with BVG. In light of Ituna's inability to deliver the minimum financing required by the LOI, the decision by the Board of Ituna to terminate the merger and the fact that no announcement has been made of this decision, BVG hereby announces its withdrawal from the LOI and the proposed merger.
BVG's withdrawal from the merger will allow it to immediately unwind the 1 for 2 share roll back and commence a financing of up to $1,500,000 to fund the activities of the Company.
On Behalf of the Board,
William S. Wagener, Chief Operating Officer
Contact Information:
303-347-9239