TSX.V (NEX Board): GBN.H
SASKATOON, July 22, 2016 /CNW/ - The Bankruptcy and
Insolvency Act proposal by Golden Band Resources Inc.
("Golden Band") to its
creditors (the "Proposal") was approved by creditors on
July 22, 2016.
Subject to court approval, the Proposal contemplates:
a)
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Procon Resources Inc. or
its nominee ("Procon") acquiring the shares of Golden Band
under a bid transaction (the "Stalking Horse Credit Bid");
and
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b)
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all existing shares and
equity interests in Golden Band (the "Existing Equity
Interests") will be retracted, cancelled and extinguished and
new equity interests in Golden Band will be issued to
Procon.
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The purchase price by Procon under the Stalking Horse Credit Bid
equals the obligations of Golden
Band to Procon under the Credit Agreement (approximately
$19.6 million, plus professional fees
and costs), all obligations owed by Golden
Band pursuant to the DIP Term Sheet and any obligations of
Golden Band outstanding as of the
closing date that rank in priority to the DIP Obligations.
The closing date is expected to be August 12, 2016.
As sales and investment solicitation procedures failed to yield
qualified bids for amounts in excess of the Stalking Horse Credit
Bid, the Stalking Horse Credit Bid of Procon has been put forward
to the Court for approval as the best offer available.
Particulars of the hearing (the "Hearing") at which the
Court of Queen's Bench For Saskatchewan will be asked to approve
the Proposal are as follows:
Location:
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Court House, 520 Spadina
Crescent East, Saskatoon, Saskatchewan,
Canada.
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Date &
Time:
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Friday, August 12, 2016 at
10:00 a.m. Mountain Daylight Time.
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Online Access to Hearing
Materials:
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http://www.bowragroup.com/#!golden-band-resources/edi9w.
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Sincerely,
Golden Band Resources Inc.,
"Paul Saxton"
Paul Saxton, CEO
Caution Regarding Forward-Looking Information and
Statements
This news release includes certain forward-looking statements or
information. All statements other than statements of historical
fact included in this release, including, without limitation,
statements regarding the potential restructuring and financing
plans, objectives or expectations of Golden Band Resources Inc.
(Company) are forward-looking statements that involve various risks
and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Company's plans or expectations include risks
relating to the failure to obtain restructuring proposals
acceptable to the Company, necessary regulatory or shareholder
approvals, regulatory changes, timeliness of government or
regulatory approvals and other risks detailed herein and from time
to time in the filings made by the Company. The Company makes all
reasonable efforts to update its corporate information on a timely
basis.
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.
SOURCE Golden Band Resources Inc.