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 authorities.
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 release."
SOURCE: GeoVenCap Inc.
For further information:
President and Chief Executive Officer
(514) 868-9408 x255