TSX Venture Exchange: CQV
Frankfurt Stock Exchange: DFM
ST. JOHN'S, Jan. 18 /CNW/ - Canadian Imperial Venture Corp. ("CIVC" / the
"Company") is pleased to announce that it has entered into an agreement (the
"Agreement") with PDI Production Inc. and Gestion Resources Limited
(collectively referred to as "PDIP") and Shoal Point Energy Ltd. ("Shoal
Point") for the disposition of CIVC's interests in Garden Hill North and
Garden Hill South. The consideration for the disposition is a $4,700,000
payment from PDIP. In addition, CIVC has granted to PDIP a non-exclusive
perpetual licence in relation to its intellectual property in consideration of
an annual fee of $25,000 as well as an additional $300,000 as an upfront
The first closing under the Agreement took place today and CIVC received
$4,000,000 and out of this amount $1,000,000 has been paid to CIVC Creditor
Corp. under the terms of its agreement with CIVC. CIVC has a right to recover
this payment to Creditor Corp. through a royalty on production from Garden
Hill. A second closing for the balance of the purchase price is to take place
on or before March 31, 2008.
CIVC also obtained an extension from Creditor Corp. to March 31, 2008 of
a $500,000 payment that had been due on December 31, 2007. This payment, as
well as an additional payment of $500,000 due to Creditor Corp. within 30 days
following commencement of the first oilfield operation within EL 1070, will be
made by CIVC and PDIP under the terms of the Agreement in accordance with
their respective interests (60% by PDIP and 40% by CIVC).
As part of the Agreement PDIP paid $2,000,000 to Shoal Point in
consideration of Shoal Point agreeing to terminate its prior farmout and
option arrangements relating to Garden Hill North and South. CIVC has been
advised by Shoal Point that it will take all necessary steps to continue with
its plan to spud its proposed well at Shoal Point 2K39 by the new deadline of
March 17, 2008.
CIVC maintains its Newfoundland and Labrador interests in Exploration
Licence 1070 which includes the Shoal Point and Lourdes Prospects.
"As a result of this transaction, CIVC continues along its strategic
direction of balancing the efforts of the Company between the high impact
Western Newfoundland play and its lower risk efforts in Alberta," said Steve
Millan, CEO of CIVC.
Canadian Imperial Venture Corp. is an independent Canadian-based energy
company with interests in petroleum exploration and development in western
Newfoundland and in western Canada.
CANADIAN IMPERIAL VENTURE CORP.
Steven Millan, P.Geo.
Chairman and CEO
This release includes certain forward looking statements which reflect
beliefs, expectations, objectives and goals which are believed to be
reasonable at the time such statements are made. Actual results could differ
materially from anticipated results and may be impacted upon such factors as
commodity prices, political developments, legal decisions, market and economic
conditions, industry competition, the weather, changes in financial markets
and changing legislation.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Canadian Imperial Venture Corp., (709)
739-6700, Fax: (709) 739-6605, firstname.lastname@example.org,