CALGARY, March 20, 2013 /CNW/ - NewNorth Projects Ltd. ("NewNorth" or
the "Corporation") (TSX VENTURE: NNP) is pleased to provide the
following operational and corporate updates in respect of the
Corporation's assets and its future operational plans.
On March 1, 2013, the Corporation closed a previously announced purchase
and sale transaction with an arm's length party in respect of the
disposition of its 185 acre wholly-owned country residential
development property near Cochrane, Alberta, for net proceeds of
approximately $1.9 million.
The Corporation currently holds a 50% interest in the Riviera Suites
Hotel Limited Partnership (the "RSHLP"). The RSHLP holds commercial
land in downtown Fort McMurray, Alberta. The Corporation entered into a
conditional purchase and sale agreement with an arm's length party to
dispose of its 50% interest in the RSHLP (the "Fort McMurray
Transaction"). The Fort McMurray Transaction is expected to close in
the first half of 2013 with expected gross proceeds of approximately $5
million ($2.5 million net) less applicable realtor fees.
The Corporation recently announced that it had entered into a purchase
and sale agreement (the "Agreement") with an arm's length party for the
sale of its interest in the Kinniburgh South Limited Partnership (the
"Partnership") that holds development property near Chestermere,
Alberta, for gross proceeds of $3.5 million (the "Chestermere
Transaction"). The Agreement was amended on March 14, 2013, whereby the
purchaser waived its conditions and the closing date of the Agreement
was amended to on or about April 30, 2013. The Chestermere Transaction
remains subject to various conditions including but not limited to
receiving the approval of the Corporation's shareholders
("Shareholders"), the other limited partner of the Partnership and the
TSX Venture Exchange ("TSXV"). The board of directors of the
Corporation (the "Board") has decided to hold a special meeting of
Shareholders on or about April 30, 2013 whereat the Corporation will
seek approval for the Chestermere Transaction. Notice of the special
meeting and accompanying management information circular will be
provided to Shareholders in due course in accordance with applicable
Assuming completion of both the Fort McMurray Transaction and the
Chestermere Transaction, the Corporation's remaining operational asset
will be its 50% interest in a 408 acre development project adjacent to
Okotoks, Alberta (the "Sandstone Asset").
NewNorth's Future Operational Plans
Assuming completion of the Fort McMurray Transaction and the Chestermere
Transaction, the Corporation will hold approximately $6.8 million in
cash as well as its interest in the Sandstone Asset. Given the nature
of the market in which the Corporation operates and the opportunities
currently available to the Corporation, the Board has determined that
it is in the best interests of the Corporation to seek offers and
alternatives in disposing of its interest in the Sandstone Asset.
The Corporation has provided working termination notices to certain of
its staff and will be continuing to minimize its general and
administrative costs on a going forward basis.
Cautionary Note Regarding Forward-Looking Statements
Except for the statements of historical fact contained herein, certain
information presented herein constitutes "forward-looking statements".
More particularly, this press release contains statements concerning
the sale of the Fort McMurray Transaction, the Chestermere Transaction,
the future disposition of the Sandstone Asset, the timing of the
special meeting of Shareholders, certain conditions surrounding such
transactions and the future operational plans of the Corporation. The
forward-looking statements contained in this document are solely
opinions and forecasts which are uncertain and subject to risks.
Forward-looking statements include but are not limited to uncertainties
and other factors which may cause the actual results, performance or
achievements of the Corporation to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. These forward-looking statements are
not guarantees of future performance and are subject to a number of
known and unknown risks and uncertainties. Accordingly, readers are
cautioned that the assumption used in the preparation of the
forward-looking statements, although considered reasonable at the time
of preparation may prove to be imprecise and, as such undue reliance
should not be placed on forward-looking statements.
The forward-looking statements contained in this press release are made
as of the date of this press release. Except as required by law, the
Corporation disclaims any intention and assumes no obligation to update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
applicable securities law. Additionally, the Corporation undertakes no
obligation to comment on the expectations of, or statements made, by
third parties in respect of the matters discussed above.
Neither the TSXV nor its Regulation Services Provider (as that term is
defined in the policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE: NewNorth Projects Ltd.
For further information:
For additional information, please contact Mr. Greg N. Herndier, President and Chief Executive Officer or Mrs. Shannon Cook, Controller at (403) 531-0280.