Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.
Western Standard Metals Ltd.
TSX VENTURE : WSM

Western Standard Metals Ltd.

December 07, 2010 07:00 ET

Terraco Gold and Western Standard Execute Definitive Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 7, 2010) - Terraco Gold Corp. (TSX VENTURE:TEN) ("Terraco" or the "Company") and Western Standard Metals Ltd. (TSX VENTURE:WSM) ("Western") are pleased to announce that the companies have executed a definitive arrangement agreement (the "Agreement") to complete the previously announced transaction pursuant to which Terraco will acquire all of the outstanding securities of Western (the "Arrangement"). For details of the proposed Arrangement, please see the joint news release dated November 1, 2010 which is filed on SEDAR at www.sedar.com.

The execution of the Agreement clears the way for Western securityholders to vote on and approve the merger at a special meeting of securityholders to be held in January, 2011, with the closing of the Arrangement occurring shortly thereafter. Concurrently with the execution of the Agreement, each of the directors and officers and certain shareholders of Western, holding in total approximately 25% of the current issued and outstanding share capital of Western, executed support agreements pursuant to which they agreed to vote their Western shares in favour of the Arrangement. Completion of the Arrangement remains subject to a number of conditions including, but not limited to, receipt of all regulatory, court and shareholder approvals.

About Terraco:

Terraco (TSX VENTURE:TEN) is a junior exploration company with exploration properties in Nevada, USA. Terraco's Moonlight property adjoins the Barrick Gold Corp. / Midway Gold Corp. Spring Valley joint venture.

About Western: 

Western (TSX VENTURE:WSM) is a Canadian based company with a focus on acquisition, exploration and development of gold properties in North America. Western recently acquired a 100% interest in the Almaden Gold Project in Idaho.

Forward-Looking Statements

This release contains "forward-looking statements" which reflect the current expectations of the companies. These statements reflect managements' current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this release. Although the forward-looking statements contained in this release are based upon what the companies believe to be reasonable assumptions, the companies cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and the companies do not assume any obligation to update or revise them to reflect new events or circumstances.

Neither the 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

  • Terraco Gold Corp.
    Todd Hilditch
    CEO
    604-443-3831 or Toll free: 877-792-6688
    604-682-3860 (FAX)
    www.terracogold.com
    or
    Western Standard Metals Ltd.
    Zip Dhanani
    Chairman
    604-568-4653 or Toll Free: 1-888-500-4587
    604-569-2575 (FAX)
    www.westernstandardmetals.com