| December 02, 2009 Board of Directors Unanimously Approves Company Spin-Off | |
LETTER FROM THE PRESIDENT Dear Shareholder, It is with pleasure that I write this letter inviting you to consider and to approve the unanimous decision made by Golden Arrow's Board of Directors and Management to spin-off the Peruvian and Colombian assets to create a newly listed and more focused public company (see news release dated November 25, 2009). The shares of this new company will be distributed to Golden Arrow shareholders on the effective date of the arrangement, which is expected to be on or about January 15, 2010, or such later date as the Company determines. Therefore, you the shareholder will become the beneficial owner of two companies which will have a distinct and separate focus: one focused on exploring properties in Argentina and the other in Peru / Colombia. This letter precedes the Information Circular and proxy materials which you will receive shortly in the mail. Please take the time to read the materials and cast your vote. It is with great pleasure that I ask you to endorse this transaction with the same enthusiasm, as this opportunity can generate significant shareholder value through the discovery potential that the new Company will be able to exclusively focus on. This transaction is designed to enhance long-term value for Golden Arrow shareholders by creating two sustainable, independent, publicly traded companies, each with an ability to pursue and achieve greater success by employing more focused operational strategies best suited to its unique assets and business plans. The resulting shares of the new company would be distributed to Golden Arrow shareholders as of the Effective date. Devoting sufficient attention to Golden Arrow's properties in Argentina, Peru and Colombia was becoming increasingly difficult. The Company's share valuation was primarily driven by the Company's Argentinean properties and the Gualcamayo Royalty, and the value of the Company's Peruvian and Colombian properties was not being adequately reflected in Golden Arrow's share price. In response, we have determined that we could maximize shareholder value by spinning out the Company's Peruvian and Colombian properties into a separate publicly listed company that could focus on the development of those properties. With market conditions now significantly improved, the strategic rationale for creating two leading exploration companies, one focused on Argentina and, the other, on Peru/Colombia, unlocks greater long-term shareholder value. Further details regarding the Arrangement are set out in an information circular that has been sent to Shareholders and Warrantholders. A special meeting of the Shareholders and Warrantholders is scheduled to be held on December 23, 2009 to seek your approval for the proposed Arrangement. I encourage you to review the material and give this transaction your endorsement. ON BEHALF OF THE BOARD "Joseph Grosso" Mr. Joseph Grosso, President & C.E.O. For further information please contact Joseph Grosso, President & CEO or our Corporate Communications department at 604-687-1828 or toll free 1-800-901-0058 or fax 604-687-1858. Neither 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. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. | |
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