/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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