KIRKLAND LAKE, ON, Aug. 21 /CNW/ - GLR Resources Inc. ("GLR" or the
"Company") announces that the Company has sold all of its Goldfield Assets,
including the Box and Athona Mines, located near in and near Uranium City,
Saskatchewan to 7153945 Canada Inc. (the "Purchaser"), a wholly-owned
subsidiary of Linear Gold Corp. ("Linear").
On August 18th, 2009, the Court approved the Company's proposal to
creditors ("Proposal") and the sale of the Goldfields Assets to Linear which
provided for the sale of the Goldfields Assets ("Transaction"). The
Transaction, which closed on August 20th, 2009, provided GLR with cash
proceeds of US$5.0 million and 727,272 common shares in the capital of Linear.
In addition, GLR will receive post-closing reimbursement of deposits made by
GLR in respect of certain equipment contracts, which were assigned to the
Purchaser as part of the Transaction. Subject to certain adjustments GLR
expects its creditors to be fully repaid out of the Proposal proceeds.
The Transaction is expected to place GLR in a debt-free position and
provide it with the ability to move forward with its other prospective
projects. This has been a trying time for the Company and its shareholders.
Management is considering making application to list the Company's common
shares on a recognized Canadian stock exchange or trading facility.
About GLR Resources Inc.
GLR is a Canadian-based junior mining and exploration company focusing on
projects in North America with existing projects in Ontario and Quebec. On
January 7, 2009, the TSX de-listed GLR's securities and, consequently, the
Company's securities do not trade on a recognized Canadian exchange.
For further information please see the company website at
Forward Looking Statements: This news release contains certain
forward-looking statements, such as the references to the payment of
creditors, the Company's financial position subsequent to the payment of
creditors, and the Company's plans regarding a potential listing application
on a recognized Canadian exchange or trading facility. These forward-looking
statements are subject to a variety of risks and uncertainties which could
cause actual events or results to differ materially from those anticipated in
such forward-looking statements. Although GLR believes that the assumptions
inherent in the forward-looking statements are reasonable, undue reliance
should not be placed on these forward-looking statements.
For further information:
For further information: David J. Layman, Senior Vice President, CFO and
Co-CEO, Telephone: (705) 567-5351, E-mail: email@example.com