Sterling Resources Ltd. Confirms First Distribution in Connection with Winding-Up and Dissolution

CALGARY, June 15, 2017 /CNW/ - Sterling Resources Ltd. (TSXV:SLG) ("Sterling" or the "Company") confirms that, as previously announced, its board of directors has declared an initial cash distribution (the "First Distribution") to the holders (the "Shareholders") of Sterling's common shares (the "Common Shares") in the aggregate amount of US$92.8 million or US$0.63 per Common Share.  The First Distribution will be paid on June 30, 2017 (the "Distribution Date") to shareholders of record on June 26, 2017 (the "Record Date"), subject to the "due bills" trading process described below, and will be made as a return of capital, with the stated capital of the Common Shares being reduced accordingly.

The expected aggregate distributions to Shareholders remains in the range of US$109.3 million to US$112.5 million, as stated in the Management Information Circular dated April 5, 2017, with the second distribution and terminal distribution anticipated to be made on or prior to September 30, 2017 and during the 2018 fiscal year, respectively.

The First Distribution will be made to Shareholders pursuant to the TSX Venture Exchange's ("TSXV") due bill trading policy. Pursuant to the policy:

  • the Record Date to determine Shareholders entitled to the First Distribution is June 26, 2017;
  • the due bill trading period will be June 22, 2017 (two trading days prior to the Record Date) to June 30, 2017;

  • the payment or Distribution Date will be June 30, 2017;

  • the ex-distribution date will be July 4, 2017; and

  • the due bill redemption date will be July 6, 2017.

For clarification, "due bills" will notionally represent the return of capital that Shareholders will be entitled to receive. The due bills will be deemed to be attached to the Common Shares two trading days prior to the Record Date, and will continue to be attached to the Common Shares until the end of the Distribution Date.  Accordingly, the Common Shares will trade on a "due bill" basis from June 22, 2017 until close of trading on June 30, 2017 (the "Due Bill Period"). This means that persons who sell their Common Shares during the Due Bill Period shall also sell their entitlement to the First Distribution to the purchaser(s) of such shares. As a result, the purchaser(s) of the Common Shares during the Due Bill Period pay full value for the Common Shares (including the value of the First Distribution) to the seller.  The due bills will be redeemed on July 6, 2017 once all trades with attached due bills entered during the Due Bill Period have settled. The Common Shares will trade ex-distribution commencing on the first trading day following the Distribution Date, being July 4, 2017.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Filer Profile No. 00002072

All statements included in this news release that address activities, events or developments that Sterling expects, believes or anticipates will, should or may occur in the future are forward-looking statements.  In particular, this news release contains forward-looking statements with respect to the aggregate distributions to be made to Shareholders, the timing and quantum of the First Distribution to Shareholders and the timing of the remaining distributions to Shareholders.

These forward-looking statements involve numerous assumptions made by Sterling based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.  In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond Sterling's control, including: the impact of general economic conditions in the areas in which Sterling operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition, there are risks and uncertainties associated with oil and gas operations.  Readers should also carefully consider the matters listed under the heading "Risk Factors" in the Company's MD&A. 

Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Sterling's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. These statements speak only as of the date of the news release. Sterling does not intend and does not assume any obligation to update these forward-looking statements except as required by law.

Sterling Resources Ltd. is a Canadian-listed company whose registered office is in Calgary, Alberta. The Common Shares are listed and posted for trading on the TSXV under the symbol "SLG".

SOURCE Sterling Resources Ltd.

For further information: John Rapach, Chief Executive Officer, Phone: +44 1224 806617,; Christine Shinnie, Chief Financial Officer, Phone: +44 1224 806636,; Tracy Lessard, Corporate Secretary, Phone: (403) 813-4237,;


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890