Megastar Further Updates Shareholders Regarding Plan of Arrangement and Dividend Distribution
February 14 2011 - 2:53PM
Marketwired
Megastar Development Corporation ("Megastar", the "Company" or
"MDV") (TSX VENTURE: MDV)(FRANKFURT: M5Q) today updated
shareholders regarding the status of its recently announced plan of
arrangement and dividend distribution of 70,000,000 common shares
of Eloro Resources Ltd.
The plan of arrangement was approved by special resolution of
the shareholders on December 20, 2010 and received requisite
approval of the Supreme Court of British Columbia under Section 288
of the British Columbia Corporations Act on December 21, 2010. The
plan of arrangement has been initiated and, upon completion, will
result in the distribution of 70,000,000 shares of Eloro Resources
Ltd. to Megastar shareholders of record at close of markets on
January 7, 2011. Based on a total of 42,127,233 outstanding and
issued common shares in the capital stock of Megastar on January 7,
2011, the ratio of distribution will be approximately 1.6616329869
Eloro shares for each Megastar share. The Ex-dividend date, the
date as of which a purchaser of Megastar common shares is no longer
entitled to receive Eloro shares pursuant to the arrangement, is
January 5, 2011.
The 70,000,000 shares of Eloro Resources to be distributed by
Megastar were transferred into escrow on November 18, 2010. On
February 3, 2011 the TSX Venture Exchange announced its final
acceptance of the sale and acquisition of the Simkar property. The
release from escrow of the Acquisition Closing Documents and the
Eloro shares, and distribution of the Eloro shares remains subject
to Eloro's receipt of confirmation from the Minister of Natural
Resources and Wildlife (Quebec) that the transfer of title to the
Simkar property from Megastar to Eloro has been registered.
Although it is not known when confirmation of the registration will
be issued, Eloro expects it will be completed shortly. Megastar
will notify shareholders when a distribution date for the dividend
is determined.
ABOUT MEGASTAR DEVELOPMENT CORP.
Megastar Development Corp. is an emerging resource company
engaged in the acquisition, exploration and development of mineral
properties in Canada. Megastar owns gold and base metal properties
in Quebec and British Columbia. For further information, investors
and shareholders are invited to visit the Company's website at
www.megastardevelopment.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Dusan Berka, P. Eng., President & CEO
Statements made in this news release that are not historical
facts are "forward-looking statements", and readers are cautioned
that any such statements are not guarantees of future performance,
and that actual developments or results, may vary materially from
those in these "forward-looking" statements.
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 news release.
Contacts: Megastar Development Corp. Dusan Berka, P. Eng.
President & CEO (604) 683-6648 (604) 683-1350 (FAX)
www.megastardevelopment.com
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