The shareholders of Aurogin Resources and Morgain Minerals have voted overwhelmingly to approve the amalgamation of the companies under the terms and conditions contained in the Joint Information Circular dated July 18, 2007, and to adopt the Board recommended stock option plan. At a meeting of Aurogin shareholders held on August 17, the amalgamation was approved by 97% of the votes cast representing 43% of Aurogin’s outstanding shares. At a meeting of Morgain shareholders held later that day, the amalgamation was approved by 99% of the votes cast representing 30% of Morgain’s outstanding shares. The TSX Venture Exchange has conditionally accepted the amalgamation. The amalgamation is expected to close on or before August 29, 2007 and will create the new Castle Gold.
Christopher E. Babcock, soon to be President and CEO of Castle Gold commented that this new gold producer is ultimately “aimed at filling a growing void in the intermediate producer sector. Our organization will have increased reserves and resources, geographical synergies, a stronger mine-building team and a management team committed to focusing its efforts on growing shareholder value in both the near- and long-term.” John H. Paterson, President and CEO of Aurogin noted that “Aurogin shareholders are gaining access to both a tremendous team at Morgain and to an excellent asset with a 12-year mine life at El Castillo.”
Castle Gold will jointly operate and own 50% of El Sastre gold mine in Guatemala and operate the 100% owned El Castillo gold mine in Mexico. In addition, Castle Gold will continue work on La Fortuna property in Mexico with the goal of producing a NI 43-101 compliant resource aimed at advancing the property towards production.