/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, Dec. 20, 2012 /CNW/ - Magna Resources Ltd. (CNSX: MNA) (the "Company" or "Magna") is pleased to announce that Confederation
Minerals Ltd. ("Confederation") has informed the Company that, further
to the Company's news release dated December 4, 2012, Confederation has
received an order from the Supreme Court of British Columbia approving
the distribution of 21,086,656 common shares in the share capital of
Magna Resources Ltd. (the "Magna Shares"), on a pro rata basis, to the
Confederation shareholders of record as of November 27, 2012 of common
shares of Confederation.
The distribution of the Magna Shares by Confederation will result in
Confederation no longer maintaining a control block of the Company.
Confederation expects to complete the distribution of Magna Shares on
December 24, 2012.
"The distribution of the Magna Shares to Confederation shareholders will
introduce an essential level of liquidity in the trading of the
Company's shares and is anticipated to greatly assist in the future
health and growth of the Company", Mike Sieb, President of Magna
Resources Ltd. states. "We truly welcome the new investors and invite
them to share in management's strong belief in the Company and the
Green River Potash Project."
About the Company
Magna Resources Ltd. is dedicated to the acquisition and development of
potash mineral deposits in the USA and elsewhere. The Company holds
certain potash leases and an option in respect of certain potash lease
applications in the State of Utah that constitute the Green River
Potash Project, host to a significant potash exploration target,
through a wholly owned subsidiary, American Potash LLC, a Nevada
limited liability corporation.
This news release contains forward-looking statements regarding
completion of the Proposed Distribution. Forward-looking statements may
be identified by words such as "intends", "proposed", "if", "may" and
words of similar meaning. Forward-looking statements involve risks,
uncertainties and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements. Factors
that could cause actual results to differ materially from these
forward-looking statements include failure of Confederation to obtain
the Court Order or approval of the TSX Venture Exchange. Although the
Company believes that the assumptions and factors used in preparing the
forward-looking statements are reasonable, undue reliance should not be
placed on these statements, which only apply as of the date of this
news release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. Except where required by law,
the Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new information,
future events or otherwise.
SOURCE: Magna Resources Ltd.
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