TSX Venture Exchange symbol FNR
SASKATOON, July 25, 2012 /CNW/ - 49 North Resources Inc. ("49 North")
(TSXV: FNR) is pleased to announce its 100% owned subsidiary, Allstar
Energy Limited ("Allstar"), has entered into a binding agreement with
Westcore Energy Ltd. ("Westcore") whereby Westcore will farm into
Allstar's Riverside lands near Leader, Saskatchewan (the
Under the terms of the farm-in agreement, Westcore will complete a 3D
seismic survey on the Riverside lands pursuant to which it will expend
up to a maximum amount of $1,000,000. Based on the information obtained
from the seismic program, a drilling program will be planned for the
Riverside lands. In exchange for its completion of the seismic program
Westcore will earn up to a 60% working interest in certain wells
drilled on the Riverside lands under that program. In addition,
Westcore has been granted an ongoing right of first refusal to
participate in additional wells on the Riverside lands, whereby
Westcore can fund up to 100% of drilling, completion and equipping
costs (to a maximum amount of $1,000,000) for up to a further 60%
working interest in such wells.
The Transaction is subject to the review and approval of the TSX Venture
Westcore is an entity of which 49 North is a control person. As a
result, the Transaction constitutes a related party transaction
pursuant to Multilateral Instrument 61-101 ("MI61-101") and TSX Venture
Exchange Policy 5.9. 49 North is relying on the "issuer not listed on
specified markets" exemption in paragraph 5.5(b) of MI61-101 and the
"fair market value not more than 25% of market capitalization"
exemption in paragraphs 5.5(a) and 5.7(a) of MI61-101, or such other
available exemptions contained in MI61-101, to complete the Transaction
without obtaining an independent valuation or minority shareholder
approval that would otherwise be required.
The facts supporting 49 North's reliance on the exemptions enumerated
above include that the company is listed on the TSX Venture Exchange,
the fair market value of the interest earned by Westcore in the wells
to drilled on the Riverside lands do not exceed 25% of 49 North's
A material change report respecting the Transaction will be filed less
than 21 days before the anticipated closing date. This abbreviated
period is reasonable and necessary in the circumstances as 49 North,
through Allstar, wishes to complete the Transaction in a timely manner.
A copy of this material change report will be provided to any
shareholder of 49 North upon request, without charge.
49 North is a Saskatchewan focused resource investment company with
strategic operations in financial, managerial and geological advisory
services and merchant banking. Our diversified portfolio of assets
includes direct project involvement in the resource sector, as well as
investments in shares and other securities of junior and intermediate
mineral and oil and gas exploration companies. Additional information
about 49 North is available at www.sedar.com.
Forward Looking Information: This release contains forward-looking
information within the meaning of applicable Canadian securities
legislation, including statements respecting the anticipated completion
of the Transaction, the creation and execution of a drill program on
the Riverside lands, 49 North's business strategy, future development
and growth opportunities, prospects and anticipated benefits from the
Transaction. Forward-looking information involves known and unknown
risks, uncertainties and other factors that may cause actual results or
events to differ materially from those expressed or implied by such
forward-looking information. In addition, the forward-looking
information contained in this release is based upon what management
believes to be reasonable assumptions. Readers are cautioned not to
place undue reliance on forward-looking information as it is inherently
uncertain and no assurance can be given that the expectations reflected
in such information will prove to be correct. The forward-looking
information in this release is made as of the date hereof and, except
as required under applicable securities legislation, 49 North assumes
no obligation to update or revise such information to reflect new
events or circumstances.
Neither 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.
SOURCE: 49 North Resources Inc.
For further information:
49 North Resources Inc.
President and Chief Executive Officer
306-653-2692 or email@example.com.