Consolidated Goldfields Announces Frac Sand Property Acquisition, Special Meeting of Shareholders
19 December 2014 - 7:42AM
Business Wire
Consolidated Goldfields Corporation
(“Consolidated” or the “Company”) (CDGF) is pleased
to announce it has acquired mineral rights in three properties in
Alberta and Manitoba, Canada from 1824455 Alberta Ltd.
(“182”) that the Company believes are strategically located
for the exploration and development of frac sand. The purchase
price was $2.75 million, payable through aggregate cash payments of
$50,000, an additional $50,000 within 45 days of the closing and an
additional $175,000 upon the Company’s completion of certain
financing transactions.
In addition, the Company issued 23.5 million shares of its
common stock to 182 with an additional 23.5 million shares issued
and held in escrow, with a proxy granted to the Company to be
released to 182 upon the achievement of certain milestones. The
Company has also granted royalties to 182 in an aggregate annual
amount of $225,000 until commercial production is achieved, at
which time 182 will be entitled to a production royalty of 2% of
the proceeds received by the Company from the sale of minerals from
the properties. Feisal Somji, a director of the Company, is a
consultant to 182.
Consolidated Goldfields President and CEO, Marc J. Andrews
commented, “We are very excited about this exceptional opportunity
and new direction for the Company. The emerging frac sand/proppant
industry has already seen sizeable growth in its early stages of
development and is expected to grow annually at a rapid rate for
the foreseeable future. The exceptional land package that we have
acquired based upon the size, quality, and location of our projects
make us an immediate and important player in the Canadian frac sand
market and beyond.”
Mr. Andrews continued, “Our goal is to become the leading frac
sand producer in Canada, and then diversifying into other countries
that are coming online, as future demand around the world is
forecast to grow exponentially. We see this as a rare opportunity
to enter into a relatively young frac sand market with outstanding
growth potential, positioning ourselves to become a major player in
an industry without a ceiling.”
The Company also announced that its 2015 special meeting of
shareholders will be held on Monday, January 12, 2015. The location
and time of the meeting will be included in the proxy materials,
which will be mailed to shareholders in advance of the meeting.
Shareholders of record as of the close of business on Friday,
December 19, 2014, will be entitled to notice of and to vote at the
special meeting.
The purpose of the special meeting will be:
- to approve the amendment of the
Company’s Articles of Incorporation to change the name of the
Company from “Consolidated Goldfields Corporation” to “Brilliant
Sands Incorporated”;
- to approve the amendment of the
Company’s Articles of Incorporation to effect a 1-for-3 reverse
stock split of its issued and outstanding common stock; and
- to transact any other business properly
brought before the meeting or any adjournment or postponement of
the meeting.
Except for the historical information contained herein, certain
matters discussed in this press release are forward-looking
statements which involve risks and uncertainties. These
forward-looking statements are based on expectations and
assumptions as of the date of this press release and are subject to
numerous risks and uncertainties which could cause actual results
to differ materially from those described in the forward-looking
statements. Forward-looking statements can be identified by, among
other things, the use of forward-looking language, such as the
words “plan,” “believe,” “expect,” “anticipate,” “intend,”
“estimate,” “project,” “may,” “will,” “would,” “could,” “should,”
“seeks,” or “scheduled to,” or other similar words, or the negative
of these terms or other variations of these terms or comparable or
similar language, or by discussion of strategy or intentions. Such
forward-looking statements include, without limitation, statements
regarding future business strategy, plans and goals and other
statements that are not historical facts. Forward-looking
statements address activities, events or developments that the
Company expects or anticipates will or may occur in the future, and
are based on current expectations and assumptions. Although
management believes that its expectations are based on reasonable
assumptions, it can give no assurance that these expectations will
prove correct. The Company does not intend to publicly update any
forward-looking statements, whether as a result of new information,
future events, or otherwise, except as may be required under
applicable securities laws. A copy of the Company's report for the
year ending December 31, 2013 can be found on the OTC Pink
marketplace website at www.otcmarkets.com.
Consolidated Goldfields Corp.Marc J. Andrews, President/CEO(775)
461-2545mandrews@consolidatedgold.comwww.consolidatedgold.com