(TheNewswire)
September 5th, 2018 / TheNewswire / Saskatoon, Saskatchewan - Canadian Platinum Corp. (“CPC” or the “Company” - TSXV:CPC) announces that, further to the news release dated August 8th, 2018, it has entered into a definitive share purchase agreement (“SPA”) to acquire 100% of the common shares of a privately-held company (the “Seller”) with substantial natural gas reserves in the Barnett Shale, Texas. Under the terms of the SPA, CPC will consolidate its current issued and outstanding common shares as described below, and issue to the Seller 3.85 post-consolidation common shares to acquire one issued and outstanding common share of the Seller.
As described in the news release of August 8th, 2018, the acquired company’s primary property consists of 10 shut-in natural gas wells (9 horizontal wells and 1 vertical well) on 1,400 acres located in the Fort Worth Basin. The Company intends to re-work and re-fracture the shut-in wells with the goal of generating significant cashflows to expand and develop an asset base of both producing oil and gas and mineral properties. Depending on the success of the initial program, there is potential to significantly expand the number of wells being reworked.
Discussions are underway with financial institutions to have funding in place for the initial work program as close to the closing date of the transaction as possible.
The acquisition is an arm’s-length transaction and is subject to all board and regulatory approvals, including approval from the TSX Venture Exchange (“TSXV”), and CPC obtaining shareholder approval for the transaction if required by the TSXV. If a special meeting of shareholders is required, it will be held as soon as practical within regulatory guidelines. The proposed share consolidation is approximately twenty-six old common shares for one new common share resulting in approximately 9,279109 post-consolidation shares issued and outstanding before issuing common shares for the acquisition.
An updated independent reserve report is currently being completed by a qualified reserves evaluator (“QRE”), as defined in NI 51-101, as well as audited financial statements of the Seller.
Gary Billingsley, President, comments “All parties involved are working diligently to close the acquisition as quickly as possible within the regulatory framework. We are anxious to initiate the hydraulic fracturing programs on the gas wells in anticipation of generating cashflow as quickly as possible.”
About Canadian Platinum Corp.
Canadian Platinum Corp. is a Canadian-based resource exploration and development company with its head office in Saskatoon, SK. CPC is focused on the acquisition and development of a diversified portfolio of resource properties including precious metals, base metals, platinum group elements and strategic metals including cobalt. Recently CPC has expanded its mandate to include acquisition of near-term cash-generating resources like natural gas.
CANADIAN PLATINUM TRADES ON THE TSX VENTURE EXCHANGE UNDER THE SYMBOL “CPC”.
For more information, including news releases and technical reports providing more detail on the contents of this news release, please visit our website at www.canplats.ca.
For further information:
Canadian Platinum Corp.
Gary Billingsley, President
Phone: 306-242-7363
Facsimile: 306-992-0729
To receive information by e-mail, visit www.canplats.ca and click “Contact”.
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 RELEASE.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Certain statements contained herein constitute forward-looking statements. Such forward-looking statements are subject to both known and unknown risks and uncertainties which may cause the actual results, performances or achievements of the Corporation to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this release and except as required by law, the Corporation does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release may contain statements within the meaning of safe harbour provisions as defined under United States Securities Laws and Regulations. The above statements are based on the current expectations and beliefs of the management of Canadian Platinum and are subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above.
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