SASKATOON, July 14 /CNW/ - Golden Opportunities Fund Inc. (the "Fund")
and Weyburn Inland Terminal Ltd. ("WIT") are pleased to jointly announce that
WIT has acquired 4,000,000 Class A common shares of NorAmera BioEnergy
Corporation ("NorAmera") for a purchase price of $1.00 per Share, for the
aggregate consideration of $3,000,000 cash and the issuance of 20,000 common
shares of WIT. Following the completion of the acquisition, WIT holds 55.5% of
the outstanding Shares. The Fund will hold 42.25% of the outstanding Shares of
NorAmera and the remaining 2.25% of the Shares will be held by management as
part of the restructured partnership. NorAmera also granted to WIT a debenture
in the principal amount of $2,750,000. This debenture is on the same terms and
amounts as the outstanding debenture held by Golden Opportunities Fund.
In tandem with the acquisition of the majority interest in NorAmera, WIT
acquired a 75% interest in 101125094 Saskatchewan Ltd. for $1,338,750 and the
Fund acquired the remaining 25%. 101125094 used the cash proceeds for the
acquisition of certain warehouse facilities and equipment from
NorAmera Ventures Inc. for the aggregate purchase price of $4,560,000. The
remainder of the purchase price was financed through a debenture in the
principal amount of $2,500,000 granted by 101125094 to WIT. Some of the
acquired warehouse facilities and equipment are leased to NorAmera.
NorAmera is a Saskatchewan based company operating in Weyburn,
Saskatchewan, that produces grain based ethanol under the small producers
WIT CEO Rob Davies noted "WIT sees this acquisition as a solid
diversification opportunity for our company. We look forward to the strategic
partnership with NorAmera and Golden Opportunities Fund and the opportunities
we see for further growth in this business going forward."
Doug Banzet, CFO and Director of Golden Opportunities indicates "NorAmera
is one of the first producers under the ethanol mandate in Saskatchewan. The
investment by WIT into NorAmera is a strong vote of confidence of the
opportunity that we have believed in from the outset."
WIT is a shareholder-owned, farmer-directed grain company located on CP
Rail's Soo Line near Weyburn, Saskatchewan. Since its start in 1976, "The
Terminal" has been at the forefront of change in the industry, leading the way
to help improve the overall efficiency of Canada's grain-handling system. The
philosophy and goals of the company are summed up in its mission statement:
Profitability Through Service, Innovation and Integrity.
Golden Opportunities Fund Inc. is Saskatchewan's first and largest
Provincial Labour-sponsored Investment Fund, having raised over $130 million
in share capital to date from approximately 17,000 shareholders. The Fund has
completed over 100 investment transactions in 75 different Saskatchewan growth
companies across 11 different industry sectors for diversification, impacting
the future of Saskatchewan.
Saskatchewan Financial Services Commission has neither approved nor
disapproved the information contained herein.
For further information:
For further information: Golden Opportunities Fund Inc., Doug Banzet,
Chief Financial Officer and Director, Tel: (306) 652-5557; Weyburn Inland
Terminal Ltd., Rob Davies, Chief Executive Officer, Tel: (306) 842-7436