Megastar Announces Completion of Plan of Arrangement and Distribution of Eloro Shares
17 März 2011 - 10:56PM
Marketwired
Megastar Development Corporation ("Megastar" or the "Company") (TSX
VENTURE: MDV)(FRANKFURT: M5Q) today announced the completion of its
Plan of Arrangement and dividend distribution of 70,000,000 common
shares of Eloro Resources Ltd. ("Eloro") to Megastar shareholders
of record on January 7, 2011. The ratio of distribution is
1.6616329869 Eloro shares for each Megastar share and the effective
date of the share distribution is March 15, 2011. The Eloro share
certificates being delivered to eligible Megastar shareholders will
carry a hold period legend expiring on March 19, 2011.
"I am very pleased that the business combination with Eloro has
been completed. The Company retains the Ralleau and SEDEX projects,
two prospective base metal properties in Quebec and British
Columbia, Canada and is ready to pursue new opportunities," said
Dusan Berka, Megastar's President and CEO.
Summary of the Business Combination and Plan of Arrangement
-- August 30, 2010 - Eloro and Megastar announce a business combination,
whereby Eloro will purchase the Simkar Gold property near Val-d'Or,
Quebec from Megastar in exchange for 70,000,000 Eloro shares.
-- November 18, 2010 - Eloro and Megastar execute a definitive Asset
Purchase Agreement and Voting Trust Agreement, and close the sale of
Simkar in escrow. 70,000,000 Eloro shares carrying a four-month hold
legend expiring on March 19, 2011 are transferred into escrow.
-- December 20, 2010 - Megastar shareholders vote in favour of the Plan of
Arrangement to distribute the 70,000,000 Eloro shares to Megastar
shareholders on a pro-rata basis.
-- December 21, 2010 - Megastar receives approval for the Plan of
Arrangement from the Supreme Court of British Columbia.
-- December 22, 2010 - Megastar sets the Distribution Record Date to
January 7, 2011.
-- On February 3, 2011 - the TSX Venture Exchange declares its final
acceptance of the sale of the Simkar property.
-- February 28, 2011 - in accordance with the Plan of Arrangement, title to
the Simkar property was transferred from Megastar to Eloro, and the
70,000,000 Eloro shares are released from escrow.
ABOUT MEGASTAR DEVELOPMENT CORP.
Megastar Development Corp. is an emerging resource company
engaged in the acquisition, exploration and development of mineral
properties in Canada. Megastar owns gold and base metal properties
in Quebec and British Columbia. For further information, investors
and shareholders are invited to visit the Company's website at
www.megastardevelopment.com or call the office at 604-683-6648.
ON BEHALF OF THE BOARD OF DIRECTORS
Dusan Berka, P. Eng., President & CEO
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 news release.
Contacts: Megastar Development Corp. Dusan Berka, P.Eng.
President & CEO (604) 683-6648 (604) 638-1350 (FAX)
www.megastardevelopment.com
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