Majority Shareholder Confederation Minerals Ltd. Announces Distribution of Common Shares of Magna Resources to Confederation Shareholders
. Magna Resources Ltd. (the Company or Magna) announces that Confederation Minerals Ltd. (Confederation) has informed the Company that it intends to distribute to Confederation shareholders a majority of its approximate 56-per-cent interest in the share capital of the Company (Magna Shares).
The proposed distribution of the Magna Shares will occur by way of a reduction of capital pursuant to Section 74(1) of the British Columbia Business Corporations Act (Proposed Distribution) and is required to be approved by the Supreme Court of British Columbia (the “Court”).
The petition for an order approving the Proposed Distribution (the “Court Order”) is set for 9:45 a.m. (Vancouver time) on December 19, 2012, or as soon thereafter as Confederations counsel may be heard at the Court. If the Proposed Distribution is completed, the Magna Shares will be distributed to Confederation shareholders of record as of November 27, 2012, on a pro rata basis.
Completion of the Proposed Distribution is subject to certain conditions, including the receipt of the Court Order and the approval of the TSX Venture Exchange. Further information regarding the Proposed Distribution is disclosed in Confederations news release dated November 27, 2012.
Confederation received the Magna Shares from Magna pursuant to a transaction involving the transfer of Confederation’s 50% interest in American Potash LLC to Magna (Transaction) and a concurrent private placement. American Potash is a Nevada limited liability corporation which holds certain potash leases and an option in respect of certain potash lease applications in the State of Utah that constitute the Green River Potash Project. As a result of the Transaction, American Potash became a wholly owned subsidiary of Magna Resources Ltd.
Further information regarding the Transaction is disclosed in the Companys news release dated January 20, 2012.
About the Company
Magna Resources Ltd. is dedicated to the acquisition and development of potash mineral deposits in the USA and elsewhere, and trades on the Canadian National Stock Exchange under the symbol MNA. The Company holds certain potash leases and an option in respect of certain potash lease applications in the State of Utah that constitute the Green River Potash Project host to a significant potash exploration target, through a wholly owned subsidiary, American Potash LLC, a Nevada limited liability corporation.
On behalf of MAGNA RESOURCES LTD.
“Rudy de Jonge”
Rudy de Jonge
Chief Executive Officer
Magna Resources Ltd.
This press release contains forward-looking information regarding managements anticipated completion of the proposed private placement financing and its anticipated use of the proceeds. The forward-looking information contained in this press release is made based on expectations of management as of the date of this press release and, except as required by applicable law, Magna does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. By its very nature, such forward-looking information requires Magna to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. There is no assurance that Magna will be able to raise some or all of the proposed private placement financing.
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