Beartooth Platinum Corporation (TSX VENTURE: BTP) today announced
an update on its financial position and proposed business
combination with Kria Resources.
With negative working capital and outstanding liabilities that
exceed its current cash position, Beartooth's current financial
position continues to be a significant concern for the Company. In
the current financial and economic environment, it is increasingly
difficult for early-stage exploration companies to raise necessary
financings, which is why Beartooth's management instead supports
the proposed business combination with Kria Resources (see Press
Release dated February 27, 2009 for further details).
If the proposed business combination with Kria is not approved,
Beartooth runs the risk of becoming bankrupt and being de-listed
from the TSX Venture Exchange. The Company would also require major
concessions from suppliers to maintain its operations.
Alternatively, by combining with Kria, which has sufficient
funds on hand to finance planned activities in 2009, Beartooth
Shareholders, through their ownership of New Kria Shares, will
continue to participate in any increase in the value of Kria's
projects, as well as the current assets of Beartooth. On a
stand-alone basis, Beartooth would require additional funds with
respect to its future activities.
Kria's management team has a proven track record in financing,
exploration, mine development, corporate development and operations
for such companies as Yamana, Goldcorp, Kinross and Hudson Bay
Minerals. Kria has successfully compiled a portfolio of advanced
assets, one being a former mine, which offer defined mineral
resources and the potential for future production.
Kria Resources has recently announced a National Instrument
43-101 compliant mineral resource estimate for its Halfmile Lake
and Stratmat properties in New Brunswick, Canada and initiated a
preliminary economic evaluation (scoping study) on the Halfmile
Lake property. Xstrata owns 9% of the outstanding common shares of
Kria.
Conference Call Details
On Thursday, March 19, 2009, the management of Beartooth and
Kria will host a conference call to discuss the merits of the
proposed business combination with shareholders of both
companies.
Date: Thursday, March 19, 2009
Time: 2:00pm Eastern
Local Callers: 416-340-8018
North American Callers: 1-866-225-0198
International Callers: +1-416-340-8018
There will be question and answer period following the
presentation.
About Beartooth Platinum
Beartooth Platinum Corporation is focused on the exploration for
Platinum Group Metals (PGE) globally. The Company has property
interests in two of the world's most significant PGE camps: the
Stillwater and Bushveld intrusive complexes. In Montana, USA,
Beartooth controls 1,054 unpatented lode mineral claims over the
exposed 50-km strike length of the Stillwater Intrusive Complex.
The Stillwater Complex hosts the JM-Reef, the world's highest-grade
primary PGE deposit. Stillwater Mining Company (SMC) currently
operates two mines on the J-M Reef. Beartooth's mineral claims are
contiguous with these significant resource properties.
Additional information about the Company and its properties is
available on the Company's website at
www.beartoothplatinum.com.
About Kria Resources
Kria Resources is a private base metal exploration and
development company focused on high-quality, advanced-stage base
metal assets. Kria's primary assets include the Ruttan copper-zinc
sulphide project near Leaf Rapids, Manitoba and the Halfmile Lake
and Stratmat properties near Bathurst, New Brunswick. A NI 43-101
compliant mineral resource estimate for the Ruttan Mine Project
estimates inferred resources of 19.75 million tonnes grading 1.17%
copper and 1.47% zinc using a 1.0% capped copper equivalent cut-off
grade. Kria's Halfmile Lake property has a NI 43-101 compliant
Indicated mineral resource estimate of 6.26 million tonnes grading
8.13% zinc, 2.58% lead, 0.22% copper and 30.78 g/t silver using a
5.0% capped zinc equivalent cut-off grade. Please visit our website
at www.kriaresources.com for additional information.
Regulatory Footnotes
This communication does not constitute an offer to purchase or
exchange or the solicitation of an offer to sell or exchange any
securities of Kria or an offer to sell or exchange or the
solicitation of an offer to buy or exchange any securities of
Beartooth, nor shall there be any sale or exchange of securities in
any jurisdiction (including the United States) in which such offer,
solicitation or sale or exchange would be unlawful prior to the
registration or qualification under the laws of such jurisdiction.
The distribution of this communication may, in some countries, be
restricted by law or regulation. Accordingly, persons who come into
possession of this document should inform themselves of and observe
these restrictions. The solicitation of offers to buy Beartooth
shares in the United States will only be made pursuant to a
prospectus and related offer materials that Beartooth expects to
send to holders of Kria securities, subject to the requirements of
applicable law. The Beartooth shares may not be sold, nor may
offers to buy be accepted, in the United States prior to the time
the registration statement (if any is filed) becomes effective or
an exemption from such requirements is available. No offering of
securities shall be made in the United States except (i) by means
of a prospectus meeting the requirements of Section 10 of the
United States Securities Act of 1933, as amended, which would
contain detailed information regarding Beartooth and its
management, as well as its financial statements, or (ii) pursuant
to an exemption from the registration requirements of the United
States Securities Act of 1933, as amended.
Cautionary Note Regarding Forward-Looking Information This press
release contains "forward-looking information" within the meaning
of applicable Canadian securities legislation. Forward-looking
information includes, but is not limited to, statements with
respect to the future financial or operating performance of
Beartooth and Kria and its projects, statements regarding
exploration prospects, statements regarding synergies and financial
impact of the proposed transaction, the terms and conditions of the
transaction, the benefits of the proposed transaction, the
identification of mineral reserves and resources, costs of and
capital for exploration projects, exploration expenditures, timing
of future exploration, requirements for additional capital,
government regulation of mining operations, environmental risks,
reclamation expenses, title disputes or claims, limitations of
insurance coverage and the timing and possible outcome of pending
litigation and regulatory matters. Generally, forward-looking
information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company (and the
company resulting from the successful completion of the proposed
transaction) to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to: general business, economic, competitive, political and
social uncertainties; the actual results of current exploration
activities; delay or failure to receive board or regulatory
approvals; timing and availability of external financing on
acceptable terms; the business of Beartooth and Kria not being
integrated successfully or such integration proving more difficult,
time consuming or costly than expected; not realizing on the
potential benefits of the proposed transaction; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; future prices of mineral prices; failure of
plant, equipment or processes to operate as anticipated; accidents,
labour disputes and other risks of the mining industry; and, delays
in obtaining governmental approvals or required financing or in the
completion of activities.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking information. The Company does not undertake to
update any forward-looking information, except in accordance with
applicable securities laws.
Neither the TSX Venture Exchange nor its regulatory services
provider accepts responsibility for the adequacy or accuracy of
this release.
Contacts: BEARTOOTH PLATINUM CORPORATION Michael D. Johnson
President & CEO (775) 721-7966 Email: mdjohnsonassoc@aol.com
Website: www.beartoothplatinum.com KRIA RESOURCES Mike Hoffman
President and CEO (416) 861-2964 KRIA RESOURCES Heather Colpitts
Manager, Investor and Public Relations (416) 861-5803 Email:
info@kriaresources.com Website: www.kriaresources.com
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