Business
49 North Resources Inc. increases ownership of Allstar Energy Limited to 100%
TSX Venture Exchange symbol FNR SASKATOON, Feb. 8, 2012 /CNW/ - 49 North Resources ...
About this update from 49 North Resources Inc
[{"type":"text","content":"\n\n\n\n\n\nTSX Venture Exchange symbol FNR\n\n\nSASKATOON, Feb. 8, 2012 /CNW/ - 49 North Resources Inc. (\"49 North\")\n (TSXV: FNR) reports that it has agreed to purchase the remaining shares\n of its previously 89.5% owned subsidiary, Allstar Energy Limited\n (\"Allstar\"), for an aggregate purchase price of $1,250,000 payable\n through the issuance of 288,462 common shares of 49 North at a deemed\n price of $3.25 per share, cash consideration of $100,000 payable at\n closing and issuance of an interest free promissory note in the amount\n of $212,500 due April 30, 2012 (the \"Acquisition\"). 49 North acquired\n its initial stake in Allstar in April, 2010.\n\n\nFollowing completion of the Acquisition, 49 North will hold 100% of the\n issued and outstanding shares of Allstar, which has the exclusive right\n to explore for and extract oil and gas from approximately 42,000 acres\n of highly prospective oil and gas land, all located in West Central\n Saskatchewan. Since 49 North acquired its initial interest in Allstar\n the company has drilled and completed 17 horizontal wells at Kindersley\n and 6 vertical wells on its Red Pheasant property south of North\n Battleford.\n\n\nClosing of the Acquisition is subject to receipt of applicable\n regulatory approvals, including the approval of the TSX Venture\n Exchange. There are no finder's fees in respect to the Acquisition.\n\n\nMr. Daniel Drobot, a director of a subsidiary of 49 North, or and\n associated entity of Mr. Drobot, indirectly owns or controls all the\n purchased shares. As a result, the Acquisition constitutes a related\n party transaction pursuant to Multilateral Instrument 61-101\n (\"MI61-101\") and TSX Venture Exchange Policy 5.9. 49 North is relying\n on the \"issuer not listed on specified markets\" exemption in paragraph\n 5.5(b) of MI61-101 and the \"fair market value not more than 25% of\n market capitalization\" exemption in paragraphs 5.5(a) and 5.7(a) of\n MI61-101, or such other available exemptions contained in MI61-101, to\n complete the Acquisition without obtaining an independent valuation or\n minority shareholder approval that would otherwise be required.\n\n\nThe facts supporting 49 North's reliance on the exemptions enumerated\n above include that the company is listed on the TSX Venture Exchange,\n the fair market value of the purchased shares and ...