ROUYN-NORANDA,
QC, Oct. 3, 2013 /CNW Telbec/
- X-Terra Resources Corporation (TSXV: XT) is pleased to
announce that it has entered into a letter of intent dated
October 3, 2013 with an
arm's-length Toronto-based private
company for a reverse take-over of X-Terra and the "spin-out" of
X-Terra's resource properties in a new public company.
The letter of intent provides that X-Terra will
amalgamate or otherwise combine with the Toronto-based company and become a natural
resources merchant bank. At the same time, X-Terra will
transfer all of its resource properties and all of its liabilities
to a new company, and distribute the shares of the new company to
X-Terra's shareholders. As a result, at the closing of the
proposed transaction, X-Terra's shareholders will become
shareholders of a new natural resources merchant bank and
shareholders of a new company which will carry on X-Terra's current
natural resource business.
Completion of the proposed transaction is
subject to numerous conditions, including negotiation and execution
of definitive agreements, shareholder approval, completion of
financing, and regulatory approval, including that of the TSX
Venture Exchange. No assurances can be given that the
proposed transaction will be completed as proposed or at all.
X-Terra will issue a detailed press release
regarding the proposed transaction when its terms and conditions
are finalized. X-Terra understands that its stock will be
halted on the TSX Venture Exchange pending such press release.
About X-Terra Resources
X-Terra is a resource company focused on
acquiring and exploring energy properties in Canada. X-Terra Resources has 11,783,069
shares outstanding, a cash position of $2.35
million and an investment of 2,000,000 shares of Brownstone
Energy Inc.
Forward-looking Statements
This news release contains certain
forward-looking statements. These forward-looking statements are
subject to a variety of risks and uncertainties beyond the ability
of X-Terra to control or predict, which could cause actual events
or results to differ materially from those anticipated in such
forward-looking statements, including risks disclosed in filings
with the Canadian securities regulators made by X-Terra. No
assurance can be given that any events anticipated by the
forward-looking statements will transpire or occur, or if any of
them do so, what benefits that X-Terra will derive therefrom.
In particular, no assurance can be given as to whether the proposed
transaction described in this news release will be completed.
Accordingly, readers should not place undue reliance on
forward-looking statements.
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 X-TERRA RESOURCES CORPORATION