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Madeira Minerals Ltd. Announces Proposed Qualifying Transaction
Jun. 23, 2011 (Newsfile Corp.) -- Vancouver, British Columbia--(June 23, 2011) - Madeira Min...
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[{"type":"text","content":"\nMadeira Minerals Ltd. Announces Proposed Qualifying Transaction\n\n Jun. 23, 2011 (Newsfile Corp.) -- Vancouver, British Columbia--(June 23, 2011) - Madeira Minerals Ltd. (\"Madeira\")(TSXV: MDE.H) is pleased to announce that it has entered into a non binding Letter of Intent (“LOI”) dated June 8, 2011 with Mooncor Oil & Gas Corp (TSXV:MOO) (OOTC:MOOIF) and its subsidiary, Mooncor Energy Inc., (collectively “MOO”) for the acquisition by Madeira of all of MOO’s right, title and interest in two oil leases spanning 80 acres (collectively the “Leases” and each a “Lease”) and located in Lloydminster, Alberta. Madeira is a capital pool company and the transaction is intended to constitute Madeira's qualifying transaction (the \"Transaction\") under Policy 2.4 of the TSX Venture Exchange (the \"Exchange\"). The Transaction is not a non arm's length transaction and accordingly is not expected to be subject to the approval of Madeira shareholders. MOO, is a junior oil and gas exploration and development company continued under the laws of the Province of Ontario. The common shares of MOO are listed on the Exchange. MOO’s current emphasis is on securing a joint venture partner for its proven Muskwa/Duvernay shale gas project at Hamburg, Alberta. It has also been pursuing opportunities to realize near-term value from its other assets, potentially through a spin-off into a new entity. The Lloydminster Oil Leases The Lloydminster asset is comprised of two leases on an 80 acre property located approximately 8 miles west of the City of Lloydminster. There are two standing oil wells on the acreage, one on each 40 acre lease. The two wells are completed in the Sparky AAA oil pool (120 API crude) and are equipped for production. The property is accessible year round. Both the 4-28 and 3-28 wells are subject to a 4% GORR with production royalties payable to the Crown. Both wells are currently being reworked with well 4-28 having resumed production in late February 2011. The 3-28 well is anticipated to undergo a work over before September 1, 2011 in order to reactivate it. Upon the completion of the work on the wells and recovery of the payout accounts, the interest in the wells Madeira is seeking to acquire will be a 36% Working Interest (WI) after payout (APO) of the work-ove...