Canadian Platinum Corp. (“CPC” or the “Company” – TSXV:CPC) announces that it has entered into a Letter of Intent (“LOI”) to acquire a privately-held company (the “Seller”) with substantial natural gas reserves in the Barnett Shale, Texas. Pursuant to the LOI, CPC will acquire all of the capital stock of the Seller in consideration of CPC’s issuance of a yet-to-be-determined number of shares of its common stock to the shareholders of the Seller.
Canadian Platinum Corp. (“CPC” or the “Company” – TSXV:CPC) announces that it has entered into a Letter of Intent (“LOI”) to acquire a privately-held company (the “Seller”) with substantial natural gas reserves in the Barnett Shale, Texas. Pursuant to the LOI, CPC will acquire all of the capital stock of the Seller in consideration of CPC’s issuance of a yet-to-be-determined number of shares of its common stock to the shareholders of the Seller. The LOI contemplates the execution of a definitive agreement between the parties, with the transaction expected to close in late October 2018. The acquisition is an arm’s-length transaction and is subject to all board and regulatory approvals, including approval from the TSX Venture Exchange, and CPC obtaining shareholder approval for the transaction.
The Seller’s primary property consists of 10 shut-in natural gas wells (9 horizontal wells and 1 vertical well) on 1,400 acres located in the Fort Worth Basin. The Company intends to re-work and re-fracture the shut-in wells with the goal of generating significant cashflows to expand and develop an asset base of both producing oil and gas and mineral properties. A 2015 independent reserve study of the natural gas properties estimates Total Proved Reserves at 9.3 BCF of gas. A recent internal analysis of the assets indicate total proved and probable reserves of approximately 20 BCF of natural gas with a net operating cash flow of approximately US$10 million annually at current gas prices, once the 10-well hydraulic fracturing program is complete.
An updated independent reserve report is currently being completed by a qualified reserves evaluator (“QRE”), as defined in NI 51-101.
Gary Billingsley, President, comments “The markets for mineral exploration companies continue to be very challenging, and this acquisition, given the very positive outlook for the natural gas and liquified natural gas markets, provides CPC with an opportunity to generate significant cashflow, in the near and long-term, to help support our efforts in mineral exploration and development, lessening the reliance on equity markets for funding. At the same time, it allows for quickly establishing, and expanding, a significant asset base of cash-generating properties.”
About Canadian Platinum Corp.
Canadian Platinum Corp. is a Canadian-based resource exploration and development company with its head office in Saskatoon, SK. CPC is focused on the acquisition and development of a diversified portfolio of resource properties including precious metals, base metals, platinum group elements and strategic metals including cobalt. Recently CPC has expanded its mandate to include acquisition of near-term cash-generating resources like natural gas.
CANADIAN PLATINUM TRADES ON THE TSX VENTURE EXCHANGE UNDER THE SYMBOL “CPC”.
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Canadian Platinum Corp.
Gary Billingsley, President
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