VANCOUVER, April 28 /CNW/ - International KRL Resources Corp. (TSXV-IRK) (the "Company") announces that the proposed distribution of 10,000,000 common shares (the "Golden Harp Shares") in the capital of Golden Harp Resources Inc. ("Golden Harp"), as previously disclosed in a news release dated December 1, 2006, will not be proceeding.
The Golden Harp Shares were received by the Company as consideration for the transfer of certain mineral claims and leases generally known as the Copper Hill Property to Golden Harp. The Company has previously proposed to distribute all of the Golden Harp Shares that it owns to the shareholders of the Company on a pro rata basis as a reduction of stated capital (the "Distribution"), and has obtained shareholder approval for such at the annual general meeting of shareholders of the Company held on November 29, 2006, however such approval was subject to the authority of the directors to revoke the resolution at any time before it is acted upon, and to determine not to proceed with the Distribution.
This decision has been taken as a result of a significant change in the circumstances from the time when the proposed Distribution was initially contemplated in 2006. Important factors include: (i) a long delay in completing an initial public offering and the listing of the Golden Harp Shares on the Exchange, which was not completed until March 2008 and was a pre-condition to completing the Distribution; and (ii) unprecedented deterioration in market conditions which have restricted the ability of the Company to raise new capital. As a result, the directors of the Company have concluded that it is in the best interests of the Company to retain the Golden Harp Shares as an asset of the Company until such time as a potential sale of all or a portion of such shares can be arranged.
International KRL Resources Corp. is a mineral exploration company engaged in the acquisition, exploration and advancement of Canadian mineral properties. It has a significant property portfolio prospective for uranium, base metals and precious metals. For more information on the Company and the properties please visit www.krl.net and www.sedar.com websites.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements: The above contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery processes. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.