VANCOUVER, March 1 /CNW/ - ENERGENTIA RE
SOURCES INC. (formerly KPS
Ventures Ltd.) (TSXV: KPS.H). Energentia Resources Inc. has completed its
previously announced acquisition of all of the issued and outstanding shares
of Lerida Bay Ltd. Lerida Bay has an interest in 18 applications for uranium
concessions encompassing in excess of 62,000 hectares located in Colombia.
In conjunction with the closing of the Lerida Bay acquisition, Energentia
has received conditional approval for trading from the TSX Venture Exchange
and will commence trading on Tier 2 of the TSX Venture Exchange on the
issuance of a final bulletin by the TSX Venture Exchange.
Energentia has also changed its name from KPS Ventures Ltd. It is
anticipated that Energentia will commence trading under its new symbol "ENR"
on or about Monday, March 5, 2007.
In connection with the completion of the Lerida Bay acquisition, the
gross proceeds of $19 million from the private placement of KPS Ventures
subscription receipts, which was completed on February 14, 2007, have been
released from escrow. Sprott Securities Inc. and GMP Securities L.P. acted as
co-lead agents in respect of the offering. The net proceeds of the offering
will be used to fund the further exploration and development of the company's
uranium exploration properties, to repay Lerida Bay's outstanding bridge loans
and for general corporate purposes.
Each of the 38 million outstanding subscription receipts have been
automatically exercised, without payment of additional consideration, into one
common share and one-half of one common share purchase warrant. Each whole
warrant is exercisable to acquire one additional common share of the company
at a price of $0.75 per share until February 14, 2009. The common shares and
warrants issued upon exercise of the subscription receipts are subject to a
statutory hold period which expires on June 15, 2007.
Following the completion of the Lerida Bay acquisition and the exercise
of the subscription receipts, the company has approximately 71.3 million
common shares, 19 million common share purchase warrants and 0.8 million
employee stock options outstanding. Pursuant to the policies of the TSX
Venture Exchange, an aggregate of 20 million common shares of the company held
by the former shareholders of Lerida Bay are subject to a TSX Venture Exchange
Tier 2 value escrow agreement and will be released over a 36 month period.
Following the completion of the Lerida Bay acquisition, Michael Beckett
(Chairman), Jaime Perez, Jose Francisco Arata, Juan Manuel Pelaez, Augusto
Lopez and Augusto Garcia became directors of the company. Juan Manuel Pelaez
(President), Nelson Lee (Chief Financial Officer) and Peter Volk (General
Counsel and Secretary) will be appointed as officers.
Additional details regarding the Lerida Bay acquisition are available in
the management information circular of KPS Ventures dated January 26, 2007
which was filed with the TSX Venture Exchange and is available on SEDAR at
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding the
proposed use of proceeds from the offering. Actual developments may differ
materially from those contemplated by these statements depending upon, among
other things, the ability of the agent to raise the funds and decisions made
by regulators. The forward looking statements contained in this press release
represent the company's views and expectations as of the date of this release
and should not be relied upon as representing its views and expectations at
any subsequent date.
Trading in the securities of the company should be considered highly
speculative. The TSX Venture Exchange has in no way passed upon the merits of
the proposed transaction and has neither approved nor disapproved the contents
of this press release.
For further information:
For further information: Peter Volk, Secretary, at (416) 603-4653