Vancouver, British Columbia
� April 21, 2008:
Frontier Pacific Mining Corporation (TSX-V:FRP)
today announced that late in the afternoon on Friday April 18, 2008 it received
an unsolicited proposal from Eldorado Gold Corporation for a business
combination of Eldorado and Frontier Pacific.
Under the proposal Eldorado proposed to acquire all of the outstanding
shares of Frontier Pacific, other that those already owned by Eldorado, for
consideration of Cdn.$0.90 per share, comprised of 0.1220 of a common share of
Eldorado and Cdn.$0.0001 cash.
The
proposal letter stated Eldorado�s intention to announce the terms of the
proposal prior to the opening of North American financial markets on Monday
April 21, 2008.
The letter also
stipulated a response time of 5:00 pm on Sunday April 20, 2008.
On Saturday morning April 19, 2008 Frontier Pacific
received the resignation of Jonathan Goodman as a director of Frontier Pacific.
On Monday morning April 21, 2008 Eldorado
announced the terms of the proposal to the North American financial markets.
The board of Frontier Pacific met throughout the
weekend with its legal and financial advisors, Blake, Cassels & Graydon LLP
and Thomas Weisel Partners.
Early in the
afternoon on Sunday April 20, 2008 the Frontier Pacific board delivered a
response letter to Eldorado in which the board advised Eldorado that the
proposal of $0.90 per share does not represent fair value to the Frontier
Pacific shareholders, considering the inherent value of the Perama Hill project
as well as the value of Frontier Pacific�s other assets.
The overall economics of the Perama Hill project are
extremely compelling and are not reflected in the proposed price of $0.90 per
share.
The board�s internal view of the
value of Perama Hill has been validated by outside financing sources.
For example, to date Frontier Pacific has
received five proposals from recognized international financial institutions to
provide debt financing for the project.
All of the proposals have been on very favourable terms and several of
them contemplate 100% debt financing with no hedging requirement.
The Frontier Pacific board also considered the status
of the permitting of the Perama Hill project.
Based on reports from the Greek House of Parliament and Frontier Pacific�s
own information from meetings with government officials in
Athens, the issuance of the permits is
tantalizingly close, hopefully within the next 90 to 120 days.
The board expects that Eldorado has conducted
extensive due diligence on the status of the permitting, and the imminent
approval of the permits is a strong motivation for the timing of this coercive
and opportunistic offer.
Frontier Pacific made it clear to Eldorado that it is
open to a business combination of Frontier Pacific and Eldorado at a fair
price.
Frontier Pacific�s offer to
immediately commence discussions was rebuffed by Eldorado.
Frontier Pacific�s second largest shareholder,
Dr. Stewart Blusson, who owns approximately 14 percent of the issued and
outstanding shares, does not support this unsolicited offer.
The Frontier Pacific board of directors has commenced
a process to maximize shareholder value, including soliciting competing offers
to the Eldorado proposal.
Updates
regarding the status of the process will follow when appropriate.
On Behalf of the Board of Directors,
FRONTIER PACIFIC MINING CORPORATION
�Peter
F. Tegart�
Peter F. Tegart, P. Geo.,
President & CEO
The TSX Venture Exchange (the "Exchange") has
not reviewed and does not accept responsibility for the accuracy or adequacy of
this news release. The Exchange has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved the contents of
this press release.
This news release may contain forward-looking
statements that are based on Frontier Pacific expectations, estimates and
projections regarding its business and the economic environment in which it
operates. These statements are not guarantees of future performance and involve
risks and uncertainties that are difficult to control or predict. Therefore,
actual outcomes and results may differ materially from those expressed in these
forward-looking statements and readers should not place undue reliance on such
statements. Statements speak only as of the date on which they are made, and
the Company undertakes no obligation to update them publicly to reflect new
information or the occurrence of future events or circumstances, unless
otherwise required to do so by law.
This
news release is not intended for dissemination in the
United States of America.
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Frontier Pacific Mining
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PRODUCER |
CODE : FRP.V |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Frontier Pacific is a development stage company based in Canada. Frontier Pacific produces gold in Turkey, and holds various exploration projects in Bolivia, in Colombia and in Turkey. Its main asset in production is OVACIK in Turkey and its main exploration properties are MACUSANI EAST in Peru, DIXIE CREEK in Turkey, TARAIRA in Colombia and SAN JAVIER PROJECT in Bolivia. |