Business
East West Provides Further Update on Sale of 30% Interest in Cheal Permits
Vancouver, British Columbia--(Newsfile Corp. - February 3, 2020) - East West Petroleum Corp....
About this update from East West Minerals Ltd.
[{"type":"text","content":"East West Provides Further Update on Sale of 30% Interest in Cheal PermitsVancouver, British Columbia--(Newsfile Corp. - February 3, 2020) - East West Petroleum Corp. (TSXV: EW) (\"East West\" or the \"Company\") provides this update on the sale of its interest in Petroleum Exploration Permit 54877 and Petroleum Mining Permit 60291 (the \"Cheal Permits\"), which are subject to joint venture between a wholly owned subsidiary of the Company and Cheal Petroleum Limited (the \"Joint Venture\"), to an arm's length private New Zealand company (the \"Purchaser\"), on the terms previously announced in a news release of the Company dated June 24, 2019 (the \"Transaction\").At this time there are no contractual issues that are an impediment to closing the Transaction, and the Company and the Purchaser had previously anticipated closing at or about this time. In a news release dated November 27th 2019, the Company announced that because of the change in ownership of Cheal Petroleum Limited as the operator of the Joint Venture and owner of 70% interest in the Cheal Permits, certain government authorities in New Zealand had issued a notice regarding the financial capacity of the operator that impacted tenure to the Cheal Permits. If the concerns are not satisfied, then tenure to the Cheal Permits could be revoked. A revocation would impact both the Company's 30% interest and Cheal Petroleum Limited's 70% interest. The government has communicated no specific issues with the Company or the proposed Purchaser of the Company's 30% interest in the Joint Venture. Cheal Petroleum Limited has prepared and submitted a response and fully expects that all issues will be satisfactorily resolved. Until local regulatory issues are addressed closing of the Transaction cannot occur. At this time, it is not known when such concerns will be resolved, or whether they will be resolved, and further it is not known whether the delay could impact the Company's agreement with the Purchaser in respect of the Transaction. As additional information is available, the Company will provide further updates.About East West Petroleum Corp.East West Petroleum Corp. (www.eastwestpetroleum.ca) is a TSX Venture Exchange listed company established in 2010 to invest in international oil & gas opportunities. The Company has its primary focus on two key areas: New Zealand, wher...