La Ronge Signs Letter-of-Intent to Acquire a Producing Frac Sand Asset in Western Canada Sedimentary Basin
March 13 2014 - 4:53PM
Marketwired
La Ronge Signs Letter-of-Intent to Acquire a Producing Frac Sand
Asset in Western Canada Sedimentary Basin
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 13, 2014) - La
Ronge Gold Corp. ("La Ronge" or the "Company") (TSX-VENTURE:LAR) is
pleased to announce that it has entered into a letter of intent to
acquire the assets and business of a private company producing frac
sand in the Western Canada Sedimentary basin. The company currently
sells into the Canadian frac sand market and has fixed sales
contracts with various oil and gas service providers in Canada.
Frac sands are a proppant used in hydraulic fracturing
(fracking).
The acquisition is at arm's length and is expected to constitute
a fundamental acquisition. The acquisition contemplates a cash
purchase price of $4,500,000, subject to standard industry
adjustments. Completion of the transaction is subject to the
parties negotiating a formal purchase and sale agreement containing
standard industry terms and conditions, including required board,
shareholder and regulatory approvals, on or before April 7, 2014.
The transaction remains subject to the receipt of all necessary
regulatory approvals, including the approval of the TSX Venture
Exchange. In connection with the acquisition, La Ronge expects to
conduct a financing of approximately $7m to fund the acquisition
and capital investments and to provide for general working
capital.
La Ronge is also pleased to announce the appointment of Leonard
D. Jaroszuk to its board of directors. Mr. Jaroszuk has been
involved in and managed a number of public companies engaged in
real estate, construction, natural resources and exploration over
the past 28 years. Mr. Jaroszuk is the Chairman of Enterprise
Group, Inc. (TSX:E), which is a growing consolidator of profitable
businesses providing services to the utility, energy and
infrastructure construction sectors. Mr. Jaroszuk currently serves
as a director on several oil and gas, service and manufacturing
companies. La Ronge also announces that Alan Campbell will be
leaving its board on March 17, 2014.
La Ronge's President & CEO, Rasool Mohammad commented, "we
value this opportunity of getting involved in the
energy-services-sector and we believe there is a significant upside
potential. We welcome Leonard Jaroszuk to the board and look
forward to his guidance. La Ronge would like to thank Mr. Alan
Campbell for his services to the company."
La Ronge also wishes to announce that it has acquired by
staking, two blocks of claims in north central Saskatchewan. The
Amisk Lake block, which is located about 30 km southwest of
Creighton, has potential for near surface frac sand resources. A
geophysical survey is being planned for March 2014 that will help
determine the presence and thickness of favourable sand strata. The
Deschambeault Lake block is located along the southeast shore of
Deschambeault Lake, about 35 km southwest of the recently announced
discovery of diamondiferous kimberlite bodies, and has also
potential for frac sand resources. A till sampling program is
planned for this property this summer.
Gordon Davidson, P. Geol., VP Exploration for La Ronge, is a
"Qualified Person" for the purposes of National Instrument 43-101
and has verified the technical information disclosed in this news
release.
About La Ronge Gold Corp.
La Ronge is actively engaged in diversifying its mining assets
portfolio into sectors other than precious metals. The intent of
this strategy is to identify and acquire strategic investments that
have the capability to generate cash flow with low capital
expenditure costs. This mining asset diversification strategy is
limited geographically to Canada at the present time. La Ronge is a
Vancouver-based rapidly advancing resource growth and development
company. The Company owns high-grade gold deposits in one of
Canada's emerging gold producing regions, the La Ronge Gold Belt,
northern Saskatchewan. La Ronge also holds other gold projects
located in Ontario and, Saskatchewan.
For more information about La Ronge Gold Corp., please go to
www.larongegold.com.
Neither 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
INFORMATION
This news release includes forward-looking information and
statements, which may include, but are not limited to, information
and statements regarding or inferring the future business,
operations, financial performance, prospects and other plans,
intentions, expectations, estimates, and beliefs of the Company.
Information and statements which are not purely historical fact are
forward-looking statements. Forward-looking information and
statements involve and are subject to assumptions and known and
unknown risks, uncertainties, and other factors which may cause
actual events, results, performance, or achievements of the Company
to be materially different from future events, results,
performance, and achievements expressed or implied by
forward-looking information and statements herein. Although the
Company believes that any forward-looking information and
statements herein are reasonable, in light of the use of
assumptions and the significant risks and uncertainties inherent in
such information and statements, there can be no assurance that any
such forward-looking information and statements will prove to be
accurate, and accordingly readers are advised to rely on their own
evaluation of such risks and uncertainties and should not place
undue reliance upon such forward-looking information and
statements. Any forward-looking information and statements herein
are made as of the date hereof, and except as required by
applicable laws, the Company assumes no obligation and disclaims
any intention to update or revise any forward-looking information
and statements herein, or to update the reasons that actual events
or results could or do differ from those projected in any
forward-looking information and statements herein, whether as a
result of new information, future events or results, or otherwise,
except as required by applicable laws.
La Ronge Gold Corp.Rasool Mohammad, B.Sc. (Mining)President
& CEO604 639-4533604 685-3765www.larongegold.com