COEUR D'ALENE, Idaho, May 5, 2010 (GLOBE NEWSWIRE) -- Timberline Resources Corporation (NYSE Amex:TLR) ("Timberline") is pleased to provide an update on its acquisition of Staccato Gold Resources Ltd. (Staccato). The transaction continues to proceed as previously announced on March 23, 2010 and has now moved into the shareholder approval phase.
Timberline's definitive proxy statement has been filed with the Securities and Exchange Commission (SEC) in the United States and will be mailed to shareholders this week. The special meeting of Timberline shareholders to vote on the proposed acquisition of Staccato and related proposals will be held at the Timberline office in Coeur d'Alene, Idaho on May 28, 2010. The related Staccato information circular has also been completed and has been mailed to Staccato shareholders. Staccato's special meeting of shareholders to vote on the proposed acquisition by Timberline will be held in Vancouver, BC on May 21, 2010.
As previously announced, the Boards of Directors of both Timberline and Staccato have unanimously approved this transaction and have recommended that shareholders approve the acquisition. The expected primary benefits for Timberline shareholders include:
- Low cost acquisition of a significant mineralized material base with near-term gold production potential at the Lookout Mountain project
- Large, drill-tested, highly prospective project portfolio on Nevada's Battle Mountain - Eureka gold trend
- Cash infusion of approximately $5 million, net of transaction costs, for exploration and development, primarily at the Lookout Mountain project
- Growth of strategic assets in Nevada while maintaining an attractive share structure.
- Significant premium to the recent Staccato market price and a fresh start toward realization of shareholder value
- Involvement in anticipated near-term gold production at the Butte Highlands Gold Project joint venture where Timberline owns a 50% carried-to-production interest
- Investment in a company with the capability and strategic alliances to explore, drill, permit, develop, and produce – and the corporate strength to advance its projects
- Ownership of two core drilling subsidiaries with positive cash flow to provide economical drilling for exploration and development
- Attractive corporate vehicle and share structure to accommodate additional acquisitions and growth.