Chesstown Capital Inc. Receives TSXV Approval for Loan
12 March 2011 - 9:02AM
Marketwired
Letter of Intent and Definitive Agreement
Chesstown Capital Inc. (TSX VENTURE: CHC.H) ("Chesstown")
announced on December 13th, 2010, it entered into an arm's length
and non-binding letter of intent ("LOI") with Apex Royalty
Corporation ("Apex") pursuant to which Chesstown will, subject to a
number of conditions, acquire all of the issued and outstanding
shares of Apex. Apex owns an option to acquire an undivided one
hundred percent legal and beneficial interest in and to certain
mining claims located in northern Ontario (the "Transaction").
Chesstown further announced on January 26, 2011 that it had
entered into a definitive agreement with the shareholders of Apex
to acquire all of the issued and outstanding shares of Apex.
Chesstown is a Capital Pool Company under the policies of the
TSX Venture Exchange ("TSXV") and it is intended that the
Transaction, if completed, will constitute Chesstown's Qualifying
Transaction under TSXV policies. It is anticipated that the
Resulting Issuer will meet Tier 2 listing requirements of the TSXV
for a Mining Issuer upon completion of the Transaction.
Loan to Apex
The TSXV has provided conditional approval to Chesstown to
advance a secured non-interest bearing loan to Apex, if necessary,
in the amount of $120,000 for the purpose of making a payment under
the option agreement between Apex and the owners of the mining
claims subject to the option. The payment under the option
agreement is due on March 25, 2011. The purpose of the loan is to
preserve the asset until the completion of the Transaction. The
loan will be secured by all of the assets of Apex and will be
repayable if the Transaction does not close by July 31, 2011. The
approval is conditional upon the TSXV reviewing the loan
documentation.
Investors are cautioned that, except as disclosed in the
management information circular or filing statement to be prepared
in connection with the Transaction, any information released or
received with respect to the Transaction may not be accurate or
complete and should not be relied upon. Trading in the securities
of a capital pool company should be considered highly
speculative.
For Investors
This press release may include statements about expected future
events and/or financial results that are forward-looking in nature
and subject to risks and uncertainties. Chesstown cautions that
actual performance will be affected by a number of factors, many of
which are beyond its control. Future events and results may vary
substantially from what Chesstown currently foresees. Discussion of
the various factors that may affect future results is contained in
Chesstown's recent filings, available on SEDAR.
The TSX Venture Exchange Inc. has in no way passed upon the
merits of the proposed transaction and has neither approved nor
disapproved the contents of this press release.
Contacts: Brian Crawford CEO 905-681-1925
bcrawford@brantcapital.ca
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