Lupaka Gold gets shareholders approval for purchase of Andean American

09/21/2012 02:22 EDT | Updated 11/21/2012 05:12 EST
VANCOUVER - The purchase of Andean American Gold Corp. (TSXV:AAG) by Lupaka Gold Corp. (TSX:LPK) received overwhelming support from their respective shareholders on Friday.

More than 98 per cent of the votes cast at the Lupaka shareholders meeting were in favour of the transaction, announced in July. The agreement received 99 per cent of the votes from Andean American's shareholders.

Andean American shareholders will receive 0.245 of a Lupaka share for each of their shares. As a result, they'll own a roughly 45 per cent stake in Lupaka after the deal is completed.

The merger, which requires court approval, is expected to close Oct. 1. The last day of market trading for Andean American is Tuesday.

"We are pleased that our shareholders support this strategic transaction. We look forward to progressing to completion of this merger and meeting our objective of creating a well-financed Peru-focused gold explorer," Eric Edwards, Lupaka Gold's president and CEO, said in a statement Friday,

David Rae, Andean American's president and CEO, said the overwhelmingly positive response "reinforces our view that the proposed combination of the two companies is in the best interests of Andean American shareholders."

Andean American shares traded at 19 cents at the TSX Venture Exchange, up two cents. Lupaka Gold shares were up 11 cents or about 15 per cent at 85 cents on the Toronto Stock Exchange.