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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (31770)	1/27/2009 10:04:29 AM
From: LoneClone	Read Replies (1) \| Respond to of 193482

Linear Gold Responds to B2Gold's Offer for Central Sun Mining Tue Jan 27, 9:14 AM ca.news.finance.yahoo.com HALIFAX, NOVA SCOTIA--(Marketwire - Jan. 27, 2009) - Linear Gold Corp. (TSX: LRR.TO) today responded to the announcement by B2Gold Corp. of their intention to acquire all the shares of Central Sun Mining Inc. in exchange for shares of B2Gold. Wade K. Dawe, President and Chief Executive Officer of Linear, said: "We are evaluating B2Gold's announcement of its bid for Central Sun Mining. Upon initial review, our analysis indicates that Linear Gold's proposal remains in the best interests of Central Sun shareholders, providing them with significantly higher attributable cash flow following completion of a merger. Linear Gold's much tighter capital structure and significantly lower operating and exploration cost structure compliment Central Sun's assets and maximize the return to Central Sun's shareholders. Linear Gold has demonstrated its financial discipline over the years and will continue to do so once the merger with Central Sun is complete. Linear Gold retains the right to match any Superior Proposal for Central Sun and we will review the details of B2Gold's proposal to determine our response within the next four days, as provided in the merger agreement with Central Sun. We remain committed to completing the transaction with Central Sun on terms that we believe are in the best interests of both Linear Gold and Central Sun shareholders." Linear Gold's balance sheet strength includes working capital of $25.0 million ($0.90 per share) as of January 2009 and $41.4 million ($0.96 per share) on a pro-forma basis following completion of the recently announced private placement led by Cormark Securities Inc. and assuming the exercise of the over-allotment option. Following completion of the merger with Central Sun Mining and the closing of the private placement, Central Sun shareholders would own over 37% of Linear Gold. Linear Gold also holds a portfolio of quality gold properties, including the Ixhuatan Property in Mexico, which at a 0.5 grams per tonne gold cut-off is host to a significant resource including: - 219,000 ounces of gold and 990,000 ounces of silver - Measured Resources - 823,000 ounces of gold and 3,410,000 ounces of silver - Indicated Resources - 703,000 ounces of gold and 2,260,000 ounces of silver - Inferred Resources. The Ixhuatan Property, along with Linear's three Dominican Republic Properties, are subject to fully funded joint venture agreements that ensure the properties are advanced at no expense to Linear Gold. Linear Gold has retained Cormark Securities Inc. as its financial advisor for this transaction. Linear Gold Corp. is actively exploring for gold through joint ventures with Kinross Gold in Mexico and Everton Resources in the Dominican Republic. Wade K. Dawe, President This news release contains "forward-looking statements". Such forward-looking statements, especially those that address resource quantities, grades, and contained metals, are generally made on the basis of estimation and extrapolation from a limited number of drill holes and metallurgical studies. Where the company expresses or implies an expectation as to future events or results, such expectation or belief is expressed in good faith and is believed to have a reasonable basis for the statement. However, forward-looking statements are subject to risks and uncertainties which could cause actual results to differ significantly from future results expressed or implied. These risks include, but are not limited to, metal price volatility, political and operational risks in the countries where we operate, and a degree of uncertainty in connection with evaluating a deposit until the deposit has been extensively drilled on closely spaced centres. The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Contacts Wade K. Dawe Linear Gold Corp. President & Chief Executive Officer (902) 422-1421 Website: www.lineargoldcorp.com