Trading Symbol: BUV - TSX-V
Shares Outstanding: 33,694,557
HALIFAX, March 27 /CNW/ - Buchans River Ltd. (BUV-TSX-V) ("Buchans River"
or "Company") announces that management has reported to the Board of Directors
that it has completed its analysis and concluded that there is a strong
business case for considering the combination of the assets and operations of
the Company with those of Royal Roads Corp. ("Royal Roads") for the ultimate
purpose of enhancing shareholder value in both companies.
Following this report, the Board of Directors formed an independent
committee whose mandate is to investigate a possible combination of the two
companies. The independent committee has, however, decided to defer
discussions with Royal Roads until such time as the Company is in a position
to announce a resource on its Lundberg Zone, currently subject to a
6,000 metre drill program designed to define an inferred resource. Buchans
River expects to be in a position to announce the resource later this year.
It is important to note that there can be no assurance that any
transaction may arise from these considerations. Also, should the Board of
Directors, on the advice of the Independent Committee, decide to proceed with
the combination, it would be subject to receipt of all necessary regulatory,
court and shareholder approvals.
About Buchans River
Buchans River is a resource company based in Halifax, Nova Scotia, Canada
and is focused on exploring and developing base metal properties in the famous
Buchans mining camp in central Newfoundland and Labrador, Canada. Buchans
River is 26.39% controlled by Royal Roads Corp. (RRO - TSX-V) ("Royal Roads")
which currently owns 8,890,953 Buchans River shares. Royal Roads is a
Halifax-based resource company also developing base metal properties in
Newfoundland and Labrador. Together, Royal Roads and Buchans River control a
total of 33,700 hectares within central Newfoundland's Victoria Lake and
Buchans mining camps, including the historic Buchans mine (owned by Buchans
River) and the Daniels Pond deposit (owned by Royal Roads). Buchans River also
controls several exploration properties outside of the Buchans camp, including
several under joint venture to Prominex Resource Corp. (PXR - TSX-V) and
Playfair Mining Ltd. (PLY - TSX-V), which are being actively explored.
Forward Looking Statements
Certain information regarding Buchans River contained herein may
constitute forward-looking statements within the meaning of applicable
securities laws. Forward-looking statements may include estimates, plans,
expectations, opinions, forecasts, projections, guidance or other statements
that are not statements of fact. Although Buchans River believes that the
expectations reflected in such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to have been correct.
Buchans River cautions that actual performance will be affected by a number of
factors, many of which are beyond the Buchans River's control, and that future
events and results may vary substantially from what the Company currently
foresees. Buchans River's forward-looking statements are expressly qualified
in their entirety by this cautionary statement.
For additional information on the Company's properties and activities,
please visit our web site at http://www.buchansriver.ca/.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Warren G. MacLeod, President & CEO; David
Felderhof, Vice-President, (902) 444-3637