MONTREAL, Nov. 20, 2013 /CNW/ - Geovencap Inc. (TSXV: GOV) ("Geovencap"
or the "Company") and its wholly-owned subsidiary 8100896 Canada Inc. (together, the "Companies") announce the filing today of a notice of intention (the "Notice") to file a proposal under the Bankruptcy and Insolvency Act (Canada). Pursuant to the Notice, PricewaterhouseCoopers Inc. ("PWC") has been appointed as the trustee in the Companies' proposal
proceedings and will assist the Companies in their restructuring
efforts. This filing follows Geovencap strategic review of its options
caused by the lack of financing as previously announced on April 15,
2013 and the subsequent cease-trade order issued by the regulatory
For several months the Company has approached numerous potential
partners to obtain capital or enter into strategic partnerships, joint
venture agreements or sale of assets agreements. The Companies have
finally signed a Letter of Intent with Wolfden Resources Corporation ("Wolfden") that provides for the sale of its mining assets. Under the terms of
the transaction, Wolfden will pay the the Companies $125,000 in cash
and issue $100,000 payable in commons shares of Wolfden. The
transaction is subject to certain conditions, including Wolfden
completing its due diligence review of the Properties, the parties
entering into a definitive agreement on or before November 29, 2013,
the receipt of approval of the TSX Venture Exchange and a court order
authorizing the sale of the assets.
PWC will work with the Companies to complete the transaction. The filing
of the Notice has the effect of imposing an automatic 30-day stay of
proceedings that will protect the Companies and their assets from the
claims of creditors while the Companies pursue their restructuring
efforts. This 30-day period may be renewed with the authorization of
the Quebec Superior Court.
GeoVenCap is a mineral company focused on exploration principally for
silver and gold in northern New Brunswick.
Forward-Looking Statements. This news release contains discussion of items that may constitute
forward-looking statements within the meaning of securities laws that
involve risks and uncertainties. Although the company believes the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurances that its expectations
will be achieved. Factors that could cause actual results to differ
materially from expectations include the effects of general economic
conditions, actions by government authorities, uncertainties associated
with contract negotiations, additional financing requirements, market
acceptance of the Company's products and competitive pressures. These
factors and others are more fully discussed in Company filings with
Canadian securities regulatory authorities.
"Neither the 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
SOURCE: GeoVenCap Inc.
For further information:
President and Chief Executive Officer
(514) 868-9408 x255