Lion Energy, Southern Star Energy (SSEY.OB), Gold Star Resources Fuse to Create Combined Company with Promising Growth Opportunities

The proposed combination of the three companies will result in one company backed by an experienced management team and board of directors, which will ultimately benefit shareholders as the company takes advantage of growth opportunities.

“The collaboration of Lion, Southern and Gold Star combines an excellent portfolio of diverse African exploratory opportunities and a solid platform for growth in North America. This acquisition also brings significant talent to continue adding opportunity and value for our shareholders,” David Gibbs, president and CEO of Southern stated in the press release. “The combined company will be focused on the acquisition of additional strategic assets in North America so we can build a strong foundation of cash flow and stable growth opportunities. This will provide solid returns and fund and expand the combined company’s high potential exploration programs in Africa.”

Per the agreement, Lion will issue roughly 40 million common shares, with about 26 million of those shares issued to Southern shareholders, and about 14 million issued to Gold Star shareholders. Lion will exchange the 40 million shares for all of the outstanding shares of Southern and Gold Star.

The agreement still requires due diligence and needs to meet regulatory, court and shareholder approval from all three companies.