TSX Venture: KFG
NATCHEZ, MS, May 6 /CNW/ - KFG Resources Ltd. ("KFG" or the "Company") today announced that it has entered into a fiscal agency agreement (the "Fiscal Agency Agreement") and a warrant solicitation agreement (the "Warrant Solicitation Agreement") with Union Securities Ltd. ("Union"). The Fiscal Agency Agreement and the Warrant Solicitation Agreement have been approved by the Toronto Venture Exchange.
Pursuant to the Fiscal Agency Agreement and the Warrant Solicitation Agreement, Union has agreed to act as the Company's fiscal agent to provide corporate finance services for a period of two years. Under the Warrant Solicitation Agreement, the provision of corporate finance services will include contacting the holders of the Company's outstanding options and warrants to encourage the exercise of such options and warrants. In consideration of the provision of these services the Company will pay to Union, under the Fiscal Agency Agreement, $150,000, payable by the issuance of approximately 1,500,000 share purchase warrants, with each warrant exercisable at the higher of: (i) $0.10; or (ii) the then current market price for a period of 24 months from the date of issuance; and under the Warrant Solicitation Agreement Union will receive a fee equal to 5% of the aggregate number of warrants and options exercised, payable by the issuance of share purchase warrants exercisable on the same terms and conditions as the warrants to be received under the Fiscal Agency Agreement.
About KFG Resources Ltd.
KFG Resources Ltd. is an independent emerging North American company engaged in the development of onshore oil and gas reserves with activities concentrated in Mississippi and Louisiana, USA. The Company's common shares are listed on the TSX Venture Exchange under the trading symbol "KFG".
"James F. Gilbert"
James F. Gilbert, Secretary
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.
SOURCE KFG Resources Ltd.
For further information: For further information: KFG Resources Ltd., Robert A. Kadane, President, Tel: (303) 825-7080; CHF Investor Relations, Neil Murray-Lyon, Senior Account Manager, Tel: (514) 473-4715, Email: email@example.com; Christopher Haldane, Account Manager, Tel: (416) 868-1079 ext. 237, Email: firstname.lastname@example.org