Duluth Metals Limited ("Duluth") (TSX:DM)(TSX:DM.U) and Franconia Minerals Corporation ("Franconia") (TSX:FRA) are pleased to announce that Franconia shareholders have approved the previously announced plan of arrangement involving Duluth and Franconia (the "Arrangement").
At the special meeting of Franconia shareholders held earlier today, the Arrangement was approved by 88% of the votes cast by shareholders of Franconia represented in person or by proxy at the special meeting.
The completion of the Arrangement remains subject to the approval of the Court of Queen's Bench of Alberta. The hearing is to be held in Calgary, Alberta on March 4, 2011 at 2:00 p.m. If approved and all other conditions to the Arrangement are satisfied, Duluth will acquire all of the outstanding common shares of Franconia and Franconia will become a wholly-owned subsidiary of Duluth. Franconia's assets are expected to be rolled into Twin Metals Minnesota LLC, a Duluth (60%) and Antofagasta plc (40%) joint venture.
The common shares of Franconia are expected to be delisted from the Toronto Stock Exchange (the "TSX") at the close of trading on or about two business days after the closing of the Arrangement. The common shares of Duluth issued under the Arrangement are expected to be listed for trading on the TSX at the opening of trading on or about the third business day after the closing of the Arrangement.
Closing of the Arrangement is expected to occur on March 7, 2011.
Further information regarding the Arrangement may be found in the information circular and proxy statement of Franconia dated February 3, 2011 in connection with the special meeting of Franconia shareholders which is available under Franconia's profile at www.sedar.com.
About Duluth Metals Limited
Duluth Metals Limited is committed to acquiring, exploring and developing copper, nickel and platinum group metal (PGM) deposits. Duluth Metals has a joint venture with Antofagasta plc on the Nokomis Project, located within the rapidly emerging Duluth Complex mining camp in north-eastern Minnesota. The Duluth Complex hosts one of the world's largest undeveloped repositories of copper, nickel and PGMs, including the world's third largest accumulation of nickel sulphides, and one of the world's largest accumulations of polymetallic copper and platinum group metals. Aside from the joint venture, Duluth Metals retains a 100% position on approximately 31,000 acres of mineral interests on exploration properties adjacent to and nearby the Nokomis joint venture.
About Twin Metals Minnesota LLC
Twin Metals Minnesota LLC is a new joint venture company, which is 60% owned by Duluth Metals and 40% by Antofagasta plc. The joint venture's principal asset is called the Nokomis Project, located within the Duluth Complex mining camp in north-eastern Minnesota.
About Franconia Minerals Corporation
Franconia Minerals Corporation is currently focused on the development of the Duluth Complex copper-nickel-platinum-palladium project – consisting of the Birch Lake, Maturi and Spruce Road deposits – in this highly prospective region of north-eastern Minnesota. Underground mining at Birch Lake will minimize the surface impact of the operation. Also, storage of mine wastes underground would further minimize the surface impact. Additional resources at the Birch Lake project include Inferred Resources at the Maturi deposit (see news release of September 6, 2006) and at the Spruce Road deposit (see news release of Franconia dated December 3, 2007). Independent reports prepared to NI 43-101 standards by Scott Wilson RPA are available at www.SEDAR.com and www.franconiaminerals.com.