VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 10, 2012) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) ("War Eagle" or the "Company") is terminating its previously announced amalgamation agreement with Andromeda Resources Inc. ("Andromeda") due to Andromeda's breach of a key warranty under the agreement. The proposed transaction would have constituted a reverse takeover of the Company by Andromeda.
Andromeda did not make the required December 2011 payment under the purchase agreement to acquire the Terrazas property. Andromeda believes it negotiated an extension with the property vendor in early January 2012, however, the vendor has not produced a written agreement to confirm the verbal agreement reached. On February 8, 2012, Andromeda received a notice of termination from the property vendor of the purchase and sale agreement for the Terrazas property. Andromeda has advised War Eagle that Andromeda believes that the property vendor is in breach of the verbal agreement reached in January 2012 between Andromeda and the property vendor and Andromeda intends to pursue legal remedies available under the terms of the purchase and sale agreement. Nonetheless, at this time, Andromeda is in breach of its agreement with War Eagle to keep the Terrazas purchase and sale agreement in good standing.
War Eagle's shares have been halted in accordance with the policies of the TSX Venture Exchange since the announcement of the proposed transaction on September 29, 2011. Trading of its common shares is expected to resume on or around February 14, 2012. The Company continues to explore other joint venture opportunities for its exploration projects, particularly its Tres Marias property in Mexico.
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.