VANCOUVER, Jan. 23 /CNW Telbec/ - INTERNATIONAL BARYTEX RE
("the Company") (TSX-V: IBX) and the other shareholders of East China Capital
Holdings Ltd. ("ECCH") have received notification from Touch Lucky Investments
Limited ("TLIL") that TLIL has completed its due diligence and is committed to
proceed with the purchase of ECCH and its interest in the Shituru Project as
contemplated by an amended Sales Purchase Agreement ("SPA").
With the commitment, TLIL is to deliver a letter of guarantee of payment
of the purchase price and an interest free line of credit to the Company of up
to $1.5M USD for use as working capital, which is repayable on March 23, 2009,
the closing date for the transaction. Funding from the line of credit is not
expected to be available until early February 2009 due to the current Lunar
New Year holidays in China.
Funding for work programs and obligations are the responsibility of TLIL
as of January 22, 2009 but the Company will carry out all work programs on the
Shituru Property and maintain ECCH's interest in the Shituru Project until
February 22, 2009.
Revisions to the SPA include a reduction of the sales price to $12M USD
from the $17M USD originally agreed to. The Company's share of the reduced
price will be $7.38M USD.
Under the terms of the SPA, TLIL had the right to renegotiate its
purchase of ECCH in the event of a "material adverse change." TLIL notified
the Company that the continued deterioration and uncertainty in global
financial markets and commodity prices constituted a material adverse change
and that, as a result, it was unprepared to purchase ECCH for the price
originally agreed to. Thereafter, the parties renegotiated the purchase price.
The Company's Board of Directors has approved the new terms and relied on
a revised fairness opinion received from Ross Glanville and Associates in
arriving at its decision.
The Company reaffirms that the sale of its portion of ECCH and the
Shituru Copper Project will allow the Company to meet current obligations and
the ability to pursue and capitalize on new business ventures.
The Company has received conditional acceptance for the transaction from
the TSX Venture Exchange, which includes a new waiver of further shareholder
approval of the SPA as amended.
On behalf of the Board of Directors
President and Director
Some statements in this news release contain forward-looking information.
These statements address future events and conditions and, as such, involve
known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially different from
any future results, performance or achievements expressed or implied by the
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
For further information:
For further information: International Barytex Resources Ltd.: Leo King,
President or Alf Hills, CEO, (604) 688-9368, Fax: (604) 688-9336,
email@example.com; Renmark Financial Communications Inc.: Jen Power,
firstname.lastname@example.org; Dan Symons, email@example.com,
Montreal: (514) 939-3989, Fax: (514) 939-3717; Toronto: (416) 644-2020, Fax:
(416) 644-2021, www.renmarkfinancial.com