CALGARY, Alberta, May 28, 2018 (GLOBE NEWSWIRE) -- Claim Post Resources Inc. (TSX-V: CPS ) (" Claim Post " or the " Company ") is pleased to announce that it has acquired title to and control over nine quarry leases from a number of third parties, including Char Crete Ltd., Simmons Construction Ltd. and O/S Investment Corp. for a total investment of $1.3 million. These leases are directly adjacent to Claim Post’s existing quarry leases, consolidating Claim Post’s strategic control over the Tier 1 Frac Sand deposit at Seymourville, Manitoba.
Upon Claim Post attaining commercial production of frac sand, Claim Post is entitled to recover its total investment plus interest at 9%, compounded annually before the production royalty commences. The terms of the production royalty remain unchanged from those contained in the previously disclosed arrangement with respect to these leases.
Claim Post has also provided notice to the holders of its outstanding convertible debentures that it has elected to repay the remaining approximately $2.7 million principal amount plus interest owing at maturity on June 21, 2018 by issuing to such holders an aggregate of approximately 55.4 million common shares of the Company in accordance with the terms of the debentures. After giving effect to this debenture repayment in common shares, the Company will have a simplified capital structure, with approximately 187.6 million common shares and no debt outstanding. Over the past year, the funds raised from the issuance of these debentures have allowed Claim Post to better position itself for future growth by consolidating the sand leases at Seymourville, re-focusing Claim Post’s asset base by selling the Timmins mineral leases, stabilizing the balance sheet, and strengthening the leadership of the Board of Directors and management of Claim Post.
Lowell Jackson, Claim Post’s Executive Chairman, stated: “Claim Post is pleased to now hold complete and consolidated title to both the Seymourville and the adjoining Manigotagan properties, which provides us control over approximately two thirds of the Seymourville Tier 1 sand resource of 600 million tonnes as determined by the Manitoba Government. Claim Post’s significant surface silica sand deposit remains in high demand for fracking in the energy industry and we can now move forward to pursuing an active development stage. Claim Post leadership will now turn its attention to financing the next stage of growth of this exciting project.”
Claim Post Resources Inc. is a Canadian mineral exploration company and a reporting issuer in Ontario, Alberta, and British Columbia, and its shares trade on the TSX Venture Exchange under the ticker "CPS". It is currently developing a Tier 1 frac sand deposit located 200 km northeast of Winnipeg, Manitoba. The Company currently has 132,200,403 shares issued and outstanding. For further information, please contact:
CONTACT INFORMATION:
Claim Post Resources Inc. Lowell Jackson, P. Eng. Executive Chairman (403) 364-3123
Richard Williams, LLB Corporate Secretary & Director (416) 364-3123
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.
Disclaimer for Forward-Looking Information
Certain statements in this press release related to the business prospects of the Company and the benefits to be derived from the acquisition of nine quarry leases and the repayment of the convertible debentures through the issuance of common shares are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements in this news release include statements involving the anticipated benefits to be derived from the acquisition of nine quarry leases and the repayment of the convertible debentures through the issuance of common shares and statements regarding advancing the Company's frac sand development and potential associated financings in connection therewith. Such statements are qualified in their entirety by the inherent risks and uncertainties in mining and frac sand development industry in general and such other factors outlined in the Company's continuous disclosure documents available on SEDAR at www.sedar.com , which are beyond the control of the Company. Such forward-looking statements should therefore be construed in light of such factors, and the Company is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
