VANCOUVER,
Dec. 31, 2012 /CNW/ - Guyana Frontier
Mining Corp. ("Guyana Frontier",
TSXV: GYG) announces that its proposed acquisition of the Falcao
Gold Project (the "Acquisition") from a subsidiary of Horizonte
Minerals Plc. ("Horizonte", AIM and TSX: HZM), originally announced
in Guyana Frontier's news release
dated November 6, 2012, has been
terminated.
Under the terms of the acquisition agreement
(the "Acquisition Agreement") between Guyana Frontier and
Horizonte's subsidiary, it was a condition precedent to the
completion of the Acquisition that Guyana Frontier's shareholders approve a share
consolidation on a ratio of between one for two and one for ten,
with the final ratio of the share consolidation to be agreed upon
by Guyana Frontier and Horizonte's subsidiary (the "Share
Consolidation Approval Requirement"). At the annual and special
meeting of Guyana Frontier's shareholders held on December 21, 2012, Guyana Frontier's management
sought shareholder approval of a resolution in accordance with the
Share Consolidation Approval Requirement, approving a share
consolidation on a range of between one for two and one for ten,
with the final ratio of the share consolidation to be determined by
Guyana Frontier's board of directors. The foregoing resolution did
not receive the required special majority approval, and Guyana
Frontier's shareholders instead approved a share consolidation on a
ratio of one for four, which did not fulfill the Share
Consolidation Approval Requirement. On December 28, 2012, Horizonte provided notice to
Guyana Frontier that it was terminating the Acquisition on the
basis that Guyana Frontier would be unable to meet the Share
Consolidation Approval Requirement prior to the outside closing
date for the Acquisition under the terms of the Acquisition
Agreement.
About Guyana Frontier
Guyana Frontier is a TSXV-listed public mineral
exploration company focused on the exploration, discovery and
development of precious metals deposits in Guyana, South
America. Guyana Frontier began acquiring interests in
Guyanese exploration properties in 2007, and now holds rights to
obtain working interests in approximately 209,824 acres (84,915
hectares) of prospective lands in Guyana.
Guyana Frontier's primary goal is to develop a
significant gold resource at the Marudi Mountain Gold Project
located in southern Guyana, and to
explore its other projects in Guyana with joint venture partners.
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 release.
SOURCE Guyana Frontier Mining Corp.