MONTREAL, April 12, 2012 /CNW Telbec/ - Komet Manufacturers Inc. (TSXV: AQD) ("Komet") announces that it has executed as of April 4, 2012, an Earn-In Option and Joint Venture Agreement (the "Agreement") with Virginia Mines Inc. (TSX: VGQ) ("Virginia") in connection with the granting by Virginia to Komet of an option to earn a 50% undivided interest in the mining claims comprising the FCI Property located in the James Bay area in the Province of Québec (the "Property").
The purpose of the Agreement is to conduct exploration on the Property and to evaluate the possible development of the Property and possibly engage in development and mining operations on the Property. In order to earn an undivided fifty percent (50%) in the Property, Komet has agreed to issue 25,000 common shares to Virginia and to incur expenditures on the Property of $4,000,000 over a six-year period.
Komet, specialized in designing and distributing bathroom furniture products but, subject to minority shareholders' approval at the shareholders' meeting to be held on April 23, 2012, is in the process of liquidating its inventory and has elected to proceed to a Change of Business ("COB") pursuant to the provisions of Policy 5.2 of the TSX Venture Exchange (the "Exchange")and seek a listing as a Tier 2 mining issuer pursuant to the provisions of Policy 2.1 and will call a shareholders' meeting and file an Information Circular to seek shareholders' approval with respect to the Agreement and the COB.
The execution of the Agreement constitutes an Arm's Length Transaction between Komet and Virginia pursuant to Policy 1.1 of the TSX Venture Exchange.
Virginia is governed by the provisions to the Canada Business Corporations Act. To the knowledge of Komet, no one holds more than 10% of the outstanding shares of Virginia.
Trading on the common shares of Komet will remain halted until the approval of the COB by the Exchange or the issuance of a subsequent more detailed press release.
Komet, a Québec corporation headquartered in Blainville, has been listed on the TSX Venture Exchange since June 2007. The company specializes in designing and distributing bathroom furniture products.
Completion of the transaction is subject to a number of conditions, including Exchange acceptance and disinterested Shareholder approval. The transaction cannot close until the required Shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the Management Information Circular to be prepared in connection with the transaction, any information released or received with respect to the COB may not be accurate or complete and should not be relied upon. Trading in the securities of Komet should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
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.
For further information:
Mr. François Nadeau, President
Komet Manufacturers Inc.
1190 Michèle-Bohec Street
Blainville, Québec J7C 5S4