Petrostar Signs LOI to Acquire LOMAC Canada Ltd.
April 30 2014 - 2:32PM
Access Wire
Nanton, AB / ACCESSWIRE / April
30, 2014 / Petrostar
Petroleum Corporation ("Petrostar" or "the Company")
is pleased to announce that it has signed a Letter of Intent to
acquire 100% of the shares of LOMAC Canada Ltd. In consideration
for 5,000,000 class A voting common shares of Petrostar and one
Canadian Dollar.
Over the next month Petrostar
and LOMAC representatives will be working diligently towards the
execution of a formal definitive agreement. The transaction will be
subject to exchange and regulatory approval.
Petrostar Petroleum's CEO R.
Mackenzie Loree Stated: "The purchase of LOMAC Canada Ltd. is a
strategic alternative to the formerly proposed development of
Farrow, Alberta. The purpose of Farrow was to develop a tank farm
and other cash flowing energy assets that would aid the company's
transition into its processing and refining segments.
LOMAC Canada provides integrated support in
feedstock and petroleum off take marketing and strategic
infrastructure. The company's primary infrastructure is a tank
farm/tank terminal facility located in the M.D. of Foothills. The
tank farm is equipped to terminalling fuel and is equipped to store
feed stock for the companies R&D facility. The remainder of the
property is equipped with an ASTM quality control testing
laboratory and offices.
The
transaction is Non-Arm's Length and we are anticipating it to be
subject to shareholder approval. In the meantime we will be taking
positive steps toward further business development and the
completion of subject permitting."
About Petrostar Petroleum
Corp.
Petrostar is a Tier 2 Canadian-based
oil and gas exploration company trading on the TSX Venture Exchange
with property assets in both Alberta and Saskatchewan.
For further information, please
contact:
Bruce Scafe, IR and Communications
Officer
1-877-737-8864 or
bscafe@petrostarpetroleum.com.
Alternate Contact.
Mackenzie Loree, CEO
1-403-861-6779 or
mloree@petrostarpetroleum.com
Neither the TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release..
FORWARD LOOKING
INFORMATION
Certain information in this news
release is forward-looking within the meaning of certain securities
laws, and is subject to important risks, uncertainties and
assumptions. This forward-looking information includes, among other
things, information with respect to the Company's beliefs, plans,
expectations, anticipations, estimates and intentions. The words
"may", "could", "should", "would", "suspect", "outlook", "believe",
"anticipate", "estimate", "expect", "intend", "plan", "target" and
similar words and expressions are used to identify forward-looking
information. The forward-looking information in this news release
describes the Company's expectations as of the date of this news
release and includes that: (a) the Company will raise up to
$500,000, (b) the private placement will be on a non-brokered
basis, (c) the private placement will be of units at a price of
$0.15 per unit, each unit consisting of one common share and one
common share purchase warrant, (d) each warrant will entitle the
holder to purchase one common share of the Company for a term of
one year after the date of issuance, exercisable at a price of
$0.25 per share. The results or events anticipated or predicted in
such forward-looking information may differ materially from actual
results or events. Material factors which could cause actual
results or events to differ materially from a conclusion, forecast
or projection in such forward-looking information include, among
others, risks arising from general economic conditions and adverse
industry events. The Company cautions that the foregoing list of
material factors is not exhaustive. When relying on forward-looking
information to make decisions, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events. The Company has assumed that the material
factors referred to in the previous paragraph will not cause such
forward-looking information to differ materially from
actual results or events. However, the
list of these factors is not exhaustive and is subject to change
and there can be no assurance that such assumptions will reflect
the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION
CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE
COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS
SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE
IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON
THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT
TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION ON AT ANY
PARTICULAR TIME.
This news release
does not constitute an offer to sell or a solicitation of an offer
to buy any of the securities in the United States. The securities
being offered have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any state securities laws, and may not be
offered or sold within the United States or to, or for the account
or benefit of, U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
SOURCE: Petrostar Petroleum
Corporation
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