CALGARY, April 18, 2013 /CNW/ - NewNorth Projects Ltd. ("NewNorth") (TSXV:NNP) today announced its financial results for the year ended December 31, 2012.
Mr. Greg Herndier, President and Chief Executive Officer of NewNorth, reports a net loss after tax for the year ended December 31, 2012 of $2,046,000 which includes debenture interest of $23,000.
After tax loss per share, basic and diluted is $0.17.
- On October 15, 2012, NewNorth sold its 50% interest in GDC-NNP LP a partnership with the Gwich'in Development Corporation, a corporation that operates independently of but is wholly owned by the Gwich'in Tribal Council. The partnership operated a warehouse and owned vacant land, both in Inuvik, NT. The gross proceeds of the sale were $100,000.
- On December 21, 2012, NewNorth signed an agreement to sell the land it owned adjacent to Cochrane, AB. The gross proceeds from the sale were $2,000,000. The sale closed on March 1, 2013. On receipt of the proceeds from the sale, a short-term loan to one of NewNorth's independent directors was repaid in full in the amount of $547,856.
- On March 1, 2013, NewNorth signed a conditional agreement to sell its 50% share in the Kinniburgh South Limited Partnership ("Kinniburgh") (the "Chestermere Transaction"). Kinniburgh owns approximately 70 acres of residential land near Chestermere, AB. The Chestermere Transaction is subject to various conditions including but not limited to receiving the approval of NewNorth's shareholders ("Shareholders"), the other limited partner of Kinniburgh and the TSX Venture Exchange ("TSXV"). The board of directors of NewNorth is holding a special meeting of Shareholders on April 30, 2013 where NewNorth will seek approval for the Chestermere Transaction. The gross proceeds from the sale are expected to be $3,500,000 and the closing date of the sale is expected to be on or about May 7, 2013. The same party who entered into the agreement to purchase the Kinniburgh interest had also provided a short-term $500,000 loan to NewNorth on June 1, 2012. The sale agreement states that the loan will be forgiven as part of the consideration but the accrued interest is to be paid to the party that granted the loan on or before the closing date. In the event that Chestermere Transaction is not completed, NewNorth is obligated to repay the loan at the date that the sale transaction would have closed.
NewNorth is an integrated land and building development corporation operating in Alberta.
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 Chestermere Transaction and the conditions surrounding such sale as well as the expected closing date of such transaction and the anticipated gross proceeds to NewNorth. 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:
please contact Mr. Greg N. Herndier, President and Chief Executive Officer or Mrs. Shannon Cook, Controller at (403)531-0280