Netco Announces Acquisition of Option to Acquire Toruel Property, Closing of Private Placement and Name Change
23 June 2011 - 11:00PM
Marketwired
NETCO ENERGY INC. (TSX VENTURE: NEI) ("Netco" or the "Company") is
pleased to announce that, further to its press releases of March 4,
2011 and April 6, 2011, it has completed its acquisition of an
option to acquire a 75% interest in certain mineral claims
comprising the Toruel Property (the "Property"), located in the Rio
Negro Province of the Republic of Argentina, from Marifil Mines
Ltd. ("Marifil") (TSX VENTURE: MFM), pursuant to the terms of a
letter agreement dated March 3, 2011 (the "Option Agreement") with
Marifil (the "Transaction").
The Company has filed a technical report pertaining to the
Property (the "Technical Report") on SEDAR, entitled "Toruel
Project - Rio Negro Province - Argentina" and dated June 15, 2011.
The Technical Report was prepared by Mr. James F. Ebisch, R.P.G.
Mr. Ebisch is a qualified person as defined in National Instrument
43-101 and is independent of both the Company and Marifil. The
Technical Report is available under the Company's profile on SEDAR
at www.sedar.com. In connection with the closing of the
Transaction, the Company has issued a total of 150,000 common
shares of the Company (each, a "Share") to Marifil in accordance
with the terms of the Option Agreement. As a result of the
completion of the Transaction, Netco will be engaged in the
exploration and development of the Property.
In conjunction with the closing of the Transaction, the Company
also announces that it has closed a non-brokered private placement
financing (the "Financing") of units (each, a "Unit"). The Company
has issued 6,240,000 Units, at a price of $0.125 per Unit, for
aggregate gross proceeds of $780,000. Each Unit consists of one
Share and one-half of one Share purchase warrant (each, a
"Warrant"), with each whole Warrant entitling the holder to acquire
one Share at an exercise price of $0.22 for a period of two years
from the closing of the Financing.
In connection with the Financing, the Company paid aggregate
finder's fees of $46,340 and issued a total of 370,720 finder's
warrants in accordance with the rules and policies of the TSX
Venture Exchange.
The Company has received conditional approval for the
Transaction and the Financing from the TSX Venture Exchange (the
"Exchange").
The proceeds from the Financing will be used to fund the
Company's planned exploration programs on the Property and for
general working capital.
The securities issued in connection with the Transaction and the
Financing will be subject to hold periods until October 23, 2011
under Canadian laws and the policies of the Exchange, and certain
securities will also be subject to hold periods under United States
securities laws. None of the securities issued have been or will be
registered under the United States Securities Act of 1933, as
amended (the "1933 Act"), and none of them may be offered or sold
in the United States absent registration or an applicable exemption
from the registration requirements of the 1933 Act.
Shareholder Approval of Name Change
The Company also announces today that, at the annual and special
general meeting of its shareholders held on June 20, 2011, its
shareholders approved a name change of the Company to "Netco Silver
Inc." to properly reflect the Company's new business focus. The
name change will be effective upon approval of the applicable
corporate authorities and the Exchange.
For further information, please contact at or visit the company
website at www.NetcoEnergy.com.
ON BEHALF OF THE BOARD
NETCO ENERGY INC.
Colin Bowkett, Director
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking
statements, which reflect the expectations of management regarding
its future Exchange listing classification. Forward-looking
statements consist of statements that are not purely historical,
including any statements regarding beliefs, plans, expectations or
intentions regarding the future, and include discussion of the
Company's intention with respect to future listing requirements and
business plans. Such statements are subject to risks and
uncertainties that may cause actual results, performance or
developments to differ materially from those contained in the
statements. No assurance can be given that any of the events
anticipated by the forward-looking statements will occur or, if
they do occur, what benefits the Company will obtain from them.
These forward-looking statements reflect management's current views
and are based on certain expectations, estimates and assumptions
which may prove to be incorrect. A number of risks and
uncertainties could cause the Company's actual results to differ
materially from those expressed or implied by the forward-looking
statements. These forward-looking statements are made as of the
date of this news release and the Company assumes no obligation to
update these forward-looking statements, or to update the reasons
why actual results differed from those projected in the
forward-looking statements, except in accordance with applicable
securities laws. Additional information about the Company and these
and other assumptions, risks and uncertainties is available in the
Company's public filings with Canadian securities regulators,
available on SEDAR at www.sedar.com.
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.
Contacts: Netco Energy Inc. Colin Bowkett Director (604)
683-7588 www.NetcoEnergy.com
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