VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2011) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) ("War Eagle" or the "Company") is pleased to report that its shareholders approved all of the resolutions proposed at War Eagle's annual general and special meeting of shareholders held on December 8, 2011. In particular, shareholders approved the planned reverse takeover (the "Transaction") of the Company by Andromeda Resources Inc. ("Andromeda"), as fully described in the Company's information circulation dated November 9, 2011.
As previously disclosed, completion of the Transaction is conditional upon, among other things, receipt of all required regulatory approvals and Andromeda completing a financing that raises gross proceeds of at least $7,000,000. To date, Andromeda has not yet raised sufficient funds to satisfy the financing condition and does not expect to do so until early 2012.
Andromeda is required to make certain cash payments under a staged purchase agreement to acquire the Terrazas zinc-copper property, including a US$1.8 million payment due on December 15, 2011. Andromeda will not be able to make the payment on time and is currently negotiating an amendment to the purchase agreement to provide an extension. There can be no assurance that Andromeda will be able to successfully negotiate amended terms and, accordingly, that the Transaction will complete as proposed or at all.
About War Eagle
War Eagle Mining Company Inc. is an experienced mineral exploration company publicly traded since 1987 and listed on the TSX Venture Exchange under the symbol WAR. The Company is in the exploration phase of the Tres Marias zinc-lead project in Mexico. Tres Marias is a former producing high-grade zinc and germanium mine that first produced ore in 1949.
This news release was prepared by management of War Eagle, which takes full responsibility for its contents.
Legal Notice Regarding Forward-Looking Statements
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with mining operations, therefore the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements will transpire. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include references to a future drill program and related plans. These statements are based on assumptions made by the company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.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.