Business
Solid Enters Into Agreement to Sell Interest In Bear Property and Eliminates Debt
Solid Enters Into Agreement to Sell Interest In Bear Property and Eliminates Debt
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[{"type":"text","content":"\n\n\n\n Apr. 30, 2010 (Canada NewsWire Group) -- \n >\n\n\n Solid Resources Ltd. ("Solid" or the "Company") (TSX Venture: SRW) (Frankfurt: A0BLQQ) is pleased to announce that the Company has entered into a letter of intent (the "Letter of Intent") dated April 30, 2010 with Golden Lion Resources Inc. ("Golden Lion") with respect to the proposed transfer of all of Solid's 49% interest in the Bear mineral property located in the Northwest Territories (the "Bear Property") to Golden Lion. The purchase price for the 49% interest in the Bear Property is $3,000,000, and shall be payable: (i) by the assumption of debt (the "Assumed Debt") owing by Solid to certain lenders in the aggregate amount of $1,944,192.00; and (ii) by the issuance and delivery of common shares in the capital of Golden Lion ("Common Shares") having an aggregate value of $1,055,808.00, which Common Shares will be distributed to the shareholders of Solid in a tax effective manner. The actual number (not to exceed 2,000,000) and deemed price of the Common Shares shall be determined at or before the time of execution of the definitive agreement(s) for the proposed transaction.\nConcurrently with the execution of the Letter of Intent, the Company entered into a debt assumption agreement, pursuant to which Golden Lion assumed the Assumed Debt effective as of the date hereof and the lenders released Solid from any further obligations under the Assumed Debt.\nThe Board of Directors of Solid have unanimously approved the Letter of Intent and the proposed sale of Solid's 49% interest in the Bear Property. The completion of the proposed transaction is subject to a number of conditions including, negotiation and execution of definitive agreements, receipt of all requisite regulatory approvals, including the TSX Venture Exchange, receipt of the requisite level of approval of the holders of Solid's common shares, if required, and if the proposed transaction proceeds by way of a plan of arrangement, the approval of the applicable court.\nMr. Joerg Schuetz, CEO stated, "The elimination of this debt has positioned the Company with a clean balance sheet to effectively move forward and allow the Company to remain focused on our Alberta 1 (Doade-Presqueira) concession located in Spain. I am very encouraged by...