Geomark Exploration Ltd.

Geomark Exploration Ltd.

July 06, 2010 23:54 ET

Geomark Exploration Ltd. Commences Operations

CALGARY, ALBERTA--(Marketwire - July 6, 2010) - Geomark Exploration Ltd. ("Geomark") is pleased to announce that it has commenced operations as a junior exploration company following the successful completion of a plan of arrangement (the "Arrangement") involving Meliadine Holdings Inc. (formerly Comaplex Minerals Corp.) ("Meliadine"), Agnico-Eagle Mines Limited ("Agnico-Eagle"), Geomark and the shareholders of Meliadine (the "Meliadine Shareholders"). Geomark will continue to investigate and develop its mineral assets and claims located in Ontario, the Northwest Territories and Nunavut, as well as continue to produce oil and natural gas in the Western Canadian Sedimentary Basin.

As a result of the Arrangement, Geomark acquired certain assets (the "Geomark Assets") from Meliadine which include, but are not limited to: (i) oil and natural gas assets located in the Province of Alberta; (ii) certain mining leases and claims located in Ontario, the Northwest Territories and Nunavut; (iii) the working capital and certain accounts receivable of Meliadine existing prior to the effective time of the Arrangement in the amount of approximately $27,000,000; (iv) current and long-term investments; and (v) a contingent receivable from Perfora Investments S.a.r.l. ("Perfora") estimated to be $13,500,000 (in the event that Perfora sells the shares of Agnico-Eagle it received pursuant to the Arrangement at a price of at least $53.93 per share). Geomark issued a total of 52,039,760 common shares ("Geomark Shares") to the former Meliadine Shareholders (excluding Agnico-Eagle and Perfora) as partial consideration for the Geomark Assets.

Geomark's management team consists of George F. Fink as President and Chief Executive Officer, Mark J. Balog as Chief Operating Officer and Garth E. Schultz as Vice President, Finance and Chief Financial Officer, all of whom were previously officers of Meliadine. The board of directors of Geomark consists of George F. Fink, Gary J. Drummond, Carl R. Jonsson and F. William Woodward, all of whom were previously directors of Meliadine.

The Geomark Shares have been conditionally approved for listing on the TSX Venture Exchange (the "TSXV") and the Corporation intends to make application for final listing approval. It is expected that the Geomark Shares will commence trading on the TSXV under the trading symbol "GME". 

For further information regarding the Arrangement and the business and operations of Geomark, please see the management information circular of Meliadine dated June 4, 2010, a copy of which is available on the System for Electronic Document Analysis and Retrieval at www.sedar.com.

Advisories

Certain statements regarding Geomark set forth in this press release, including the business and operations of Geomark following completion of the Arrangement and the trading of the Geomark Shares on the TSXV, contain forward-looking information. This forward-looking information is subject to numerous material risks, uncertainties and assumptions, certain of which are beyond the control of Geomark, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, ability to access sufficient capital from internal and external sources, uncertainty of receiving approval from shareholders for the transaction described herein and failure to obtain required regulatory approvals, including stock exchange approvals. Readers are cautioned that the material assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise. Actual results, performance or achievement could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Geomark will derive therefrom. Geomark disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Geomark Exploration Ltd.
    George F. Fink
    President and Chief Executive Officer
    403.262-1400
    or
    Geomark Exploration Ltd.
    Mark J. Balog
    Chief Operating Officer
    403.262-1400
    or
    Geomark Exploration Ltd.
    Kirsten Kulyk
    Manager-Investor Relations
    403.262-1400