Kinbauri Provides Clarification on Glen Eagle Investment
14 May 2009 - 5:17AM
Marketwired
Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE: KNB)(FRANKFURT:
3KG.DE) and Glen Eagle Resources Inc. ("Glen Eagle") (TSX VENTURE:
GER) would like to clarify the legal structure for funds being
advanced to Kinbauri Espana S.L. ("Espana") and how anticipated
profits will be repatriated to the respective parties. Based on
inquiries, we understand that the press releases issued by both
parties may have lacked clarity as to these issues. The following
is an explanation to clarify the structure of the transaction with
Glen Eagle:
The investment by Glen Eagle in Espana is structured in part as
share capital and in part as loan. Similar to Glen Eagle, Kinbauri
has also advanced development funds to Espana in the form of share
capital and loans. With this structure, both Glen Eagle and
Kinbauri can repatriate positive cash flow to Canada from Kinbauri
Espana with a minimum of withholding tax, maximizing monetary
benefits to Kinbauri, Glen Eagle and their shareholders.
All loans are non-recourse, meaning that neither Kinbauri nor
Glen Eagle can make a call on their loans or demand loan payments.
The agreements restrict loan repayments to positive cash flow
generated from Espana's operations; further to be authorized by the
Board of Espana. Funds applied by Kinbauri and Glen Eagle toward
loan repayments should not be taxed in Canada. Cash or kind will
only be distributed to Glen Eagle and Kinbauri in the ratio of
their participating interest, whether it be by dividend or loan
repayment; i.e. 55% Kinbauri: 45% Glen Eagle or 50% Kinbauri: 50%
Glen Eagle, or as the case may be.
About Kinbauri:
Kinbauri is a TSXV - Tier 1 Mineral Exploration Company focused
on the development of precious metal prospects in Spain, Nevada and
Canada. Its immediate focus is to begin operations at its El
Valle/Carles property in Asturias, northwestern Spain by 2010. It
has 53,243,051 common shares issued and outstanding.
This press release contains certain forward-looking statements,
which are based on the opinions and estimates of management at the
date the statements are made, and are subject to a variety of risks
and uncertainties and other factors that could cause actual events
or results to differ materially from those projected. Kinbauri
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change.
The reader is cautioned not to place undue reliance on
forward-looking statements.
VISIT:
Kinbauri Gold's Hub at http://www.agoracom.com/IR/kinbauri where
investors can post questions and receive answers or review
questions and answers already posted by other investors. Kinbauri
Web-Site: www.kinbauri-gold.com
THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP. THE TSX
VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Contacts: North America Darrell Munro, BB.A, LL.B Manager,
Corporate Communications 613-836-0198 dmunro@kinbauri-gold.com Dr.
Vern Rampton, P. Eng. President 613-836 2594 613-831 2730 (FAX)
vrampton@kinbauri-gold.com / kinbauri@kinbauri-gold.com Chris Irwin
Secretary 416-361-2515 cirwin@irwinlaw.ca Europe INVESTEL Investor
Relations & Telecommunications Ruediger (Rudy) Hnyk CEO
ceo@investel.de
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