KIRKLAND LAKE, ON, May 26 /CNW/ - GLR Resources Inc. ("GLR" or the
"Company") announces that it has signed a definitive Purchase and Sale
Agreement with Linear Gold Corp. ("Linear") whereby GLR will sell a 100%
interest in the Goldfields Mine Project located near Uranium City,
Saskatchewan. The sale of the Goldfields Mine Project includes the Box and
The transaction will close immediately following receipt of court
approval of the transaction and settlement of obligations to the Company's
creditors. Upon closing, GLR will receive US$5.0 million, in cash, and 727,273
common shares of Linear having a deemed value of CA$800,000. In addition and
upon delivery of certain previously contracted plant and equipment, Linear
will reimburse GLR for deposits made with the respective suppliers of the
contracted plant and equipment in the amounts of US$3.0 million and CA$1.2
Robert J. Kasner, President and CEO of GLR, commented that the proceeds
of the sale will position the Company to pay off a secured CA$2.0 million
promissory note payable to Blackfish Capital (Master) Fund 1 SPC ("Blackfish")
and provide sufficient working capital to explore and develop other
opportunities in the Company's portfolio of properties.
The Company will soon proceed toward obtaining a listing on the Canadian
National Stock Exchange ("CNSX") to afford its shareholders a market in which
to trade in the shares of the Company.
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. These forward-looking statements are subject to a
variety of risks and uncertainties beyond GLR's ability to control or predict
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: Robert Kasner, President and Co-CEO, Telephone:
(705) 567-5351, E-mail: firstname.lastname@example.org; David J. Layman, Senior Vice
President, CFO and Co-CEO Telephone: (705) 567-5351, E-mail: