TSX Venture Exchange Symbol FNR
SASKATOON, Oct. 16, 2013 /CNW/ - Mr. Tom MacNeill, the President and
Chief Executive Officer of 49 North Resources Inc. ("49 North") (TSXV:
FNR) is pleased to announce the completion of the sale of all of the
issued and outstanding shares of CVG Mining Ltd. ("CVG Mining") to
Omineca Mining and Metals Ltd. ("Omineca") (TSXV: OMM). In
consideration for its interest in CVG Mining, 49 North received
44,145,900 common shares of Omineca, representing approximately 67.4%
of the post-closing issued and outstanding common shares of Omineca, as
well as a $5,400,000 principal amount 8% unsecured convertible
debenture (the "Convertible Debenture"). The founders and operators of
CVG Mining received 3,325,648 common shares of Omineca as a result of
the transaction, representing approximately 5.1% of the post-closing
issued and outstanding common shares of Omineca.
The Convertible Debenture has a five year term during which the
principal amount is convertible into common shares of Omineca (each a
"Debenture Share") at a conversion price of $0.75 per Debenture Share
prior to October 1, 2013; $1.00 per Debenture Share on or after October
1, 2013 but prior to October 1, 2015; and $1.25 per Debenture Share on
or after October 1, 2015. Accrued interest is also convertible at a
conversion price equal to the greater of the minimum price per
Debenture Share permitted by the TSXV and the prevailing conversion
price applicable to the principal amount at the time of conversion. CVG
Mining has guaranteed Omineca's obligations under the Convertible
Debenture, which guarantee is secured by a collateral debenture
pledging all of CVG Mining's assets.
CVG Mining is a private British Columbia corporation that was formed in
2009 with the sole purpose of exploring deposits in the Caribou mining
district of central British Columbia. CVG Mining's primary asset is
the Wingdam Project located along Lightning Creek near the
Wells-Barkersville area, 35 kilometers east of Quesnel, British
Columbia. For further information about the transaction and the
Wingdam Project, please see Omineca's news release dated October 16,
2013. Additional information about Omineca is available under
Omineca's SEDAR profile at www.sedar.com.
The completion of this transaction is another significant achievement in
49 North's business strategy of enhancing shareholder value through the
advancement of early stage resource properties. With the closing of
the reverse takeover transaction, CVG Mining has progressed from a
private company to a listed TSXV resource exploration enterprise with a
solid technical team to advance the project.
The common shares of Omineca received by 49 North in the transaction are
subject to the standard escrow requirements of the TSXV. As part of the
transaction, 49 North dissolved four of its subsidiaries, including
Newsk Emerging Resources Ltd., 101197159 Saskatchewan Ltd, 101197165
Saskatchewan Ltd. and 101197166 Saskatchewan Ltd.
49 North is a Saskatchewan focused oil and gas exploration, development
and production company with a significant resource investment portfolio
and strategic operations in financial, managerial and geological
advisory services. Our diversified portfolio of assets includes direct
project involvement in the resource sector, as well as investments in
shares and other securities of junior and intermediate mineral and oil
and gas exploration companies. Additional information about 49 North is
available at www.sedar.com.
Neither 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: 49 North Resources Inc.
For further information:
49 North Resources Inc.
President and Chief Executive Officer
306-653-2692 or firstname.lastname@example.org.