Marret Resource Corp. Announces Results of Annual and Special Meeting and Approval by Shareholders of Management Proposal

TORONTO, June 29, 2015 /CNW/ - Marret Resource Corp. (TSX: MAR) (the "Company") announces that the Company's shareholders approved all matters submitted by management for their consideration at the annual and special meeting of shareholders (the "Meeting") held on June 29, 2015 in Toronto, Ontario, including the management proposal to amend the Company's articles (the "Amendment") to permit the Company to redeem common shares and return capital to shareholders. Full details of management's proposal, the Amendment and other matters considered at the Meeting are set out in the management information circular of the Company dated May 20, 2015.

The Amendment permits the Company to redeem common shares in July 2015 (the "First Redemption") with a valuation date of June 30, 2015 and in October 2015 (the "Second Redemption", and together with the First Redemption, the "Redemptions") with a valuation date of September 30, 2015, to return capital to shareholders. For each Redemption, the Company will redeem common shares on a pro rata basis and immediately following each Redemption, the common shares which remain outstanding following such Redemption will be automatically split on a basis such that the number of common shares outstanding after such stock split is equal to the number of common shares outstanding immediately preceding such Redemption.

The Company expects to file articles of amendment giving effect to the Amendment promptly, and to announce the record date, distribution amounts and other particulars of the First Redemption and Second Redemption in early July and October, respectively.

Following the Redemptions, the Company anticipates that it will retain approximately $16.8 million in net assets (inclusive of its investment in Cline Mining Corp. ("Cline"), currently valued at $8.8 million, and based on the current value of the Company's portfolio which is subject to change). The reserve amount is being maintained to enable the Company to continue its business, to manage the liquidation of the Cline investment and to maximize the value of the Company's structure. The reserve amount will be invested in accordance with the investment policy approved by the Company's board of directors (the "Board") from time to time. It is the current intention of the Board that the reserve amount be invested in the debt and equity of natural resource companies. No further investments in private or illiquid securities are currently contemplated. The Board reserves the right to revisit and amend the investment policy as market conditions warrant.

The Company is seeking to maintain its listing on the Toronto Stock Exchange (the "TSX") following the Redemptions. As of the date hereof, the Company has notified the TSX regarding the Redemptions, however the TSX has not taken any position or made any determination in respect of the continued listing of the Company's common shares following the Redemptions. In the event that the TSX determines that the common shares will be delisted, the Company will seek an alternative listing venue for the common shares, which may include the TSX Venture Exchange. The listing of the common shares on any such alternative listing venue will be subject to the discretion of the alternative listing venue.

As a result of the Amendment being approved, the management agreement with Marret Asset Management Inc. (the "Manager") will be amended to provide that:

  • The Manager's fees related to the investment in Cline will be deferred and be payable only when the investment is sold; and

  • The Company will have an option to terminate the management agreement at any time after September 30, 2015 by providing 90 days' written notice to the Manager, subject to the payment of any fees owing under the agreement up to the termination date.

In addition to the Amendment, at the Meeting shareholders also elected Barry Allan, John Anderson, Frank Davis, David Gluskin and Douglas Scharf as directors, reappointed KPMG LLP, Chartered Accountants, as the Company's auditor, and approved certain amendments to the Company's by-laws.  Detailed voting results for the election of directors were as follows:


Votes For

% Votes For

Votes Withheld

% Votes Withheld

Barry Allan

6,551,968

85.67

1,096,171

14.33

John R. Anderson

7,365,256

96.30

282,883

3.70

Frank Davis

7,421,519

97.04

226,620

2.96

David Gluskin

7,360,504

96.24

287,635

3.76

Douglas Scharf

6,684,032

87.39

964,107

12.61

About Marret Resource Corp.

Marret Resource Corp. is focused on natural resource lending. The Company's business is primarily directed to investing in public and private debt securities of and making term loans (including bridge and mezzanine debt) to issuers in a broad range of natural resource sectors, including energy, base and precious metals and other commodities, and issuers involved in exploration and development, and may also include financing other resource-related businesses and investing in public and private equity and quasi-equity securities. The Company seeks to generate income mainly from its lending activities, while taking advantage of additional upside through equity participation in the companies which it finances. Marret Asset Management Inc. is the Company's investment manager and is responsible for implementing Marret Resource Corp.'s investment strategy and managing its investment portfolio.

About Marret Asset Management Inc.

Marret Asset Management Inc. is the manager of the Company. Marret Asset Management and its experienced team of investment professionals led by Barry Allan specialize exclusively in fixed income and, particularly, in high yield debt strategies. Barry Allan, the President and Chief Investment Officer, founded Marret Asset Management in 2000, following a career at Altamira, Nesbitt Thomson and a Canadian chartered bank. Mr. Allan has over 30 years of experience in credit and fixed income markets.

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This press release contains forward-looking statements and information within the meaning of applicable securities legislation. Forward-looking statements can be identified by the expressions "seeks", "expects", "believes", "estimates", "anticipates", "will", "target" and similar expressions. The forward-looking statements are not historical facts but reflect the current expectations of Marret Resource Corp. (the "Company") regarding future results or events and are based on information currently available to them. Forward-looking statements in this press release include statements regarding the filing of articles of amendment by the Company, completion of the Redemptions, the conduct of business by the Company following the Redemptions and the listing of the Company's common shares following the Redemptions. Certain material factors and assumptions were applied in providing these forward-looking statements. All forward-looking statements in this press release are qualified by these cautionary statements. The Company believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, the Company can give no assurance that the actual results or developments will be realized. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks Factors" in the prospectus or annual information form for the Company, and matters disclosed in the Company's management information circular dated May 20, 2015. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws. These forward-looking statements are made as of the date of this press release.

SOURCE Marret Resource Corp.

For further information: For further information about Marret Resource Corp. and its ongoing business, please contact: Marret Investor Services 416.214.5800

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Marret Resource Corp.

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