Western Resources Corp. and Vantage Chance Limited Signs Amended and Restated Subscription Agreement

  • 223 million ordinary shares in Parkway Minerals
  • 54.5 million partly paid shares in Parkway Minerals
  • 10 million shares in Davenport Resources Ltd (details below)

Based on the recently traded share prices for Parkway Minerals and Davenport Resources, the approximate market value of the shareholdings received by Lions Bay is in the order of $ 1.6 million. Mr. Bahay Ozcakmak will join the board of Parkway Minerals as the executive director. Lions Bay has also nominated Mr Patrick Power, the founder and current director of Western Potash Corp. (TSXV: WRX) (the developer of the innovative Milestone Potash Project in Saskatchewan), to join the board of Parkway Minerals as a non-executive director.

Executive Director of Lions Bay and Managing Director of CPC, Mr Bahay Ozcakmak commented:

“Following a prolonged period of under-investment in the fertility minerals sector, we believe we will be looking for a sustainable development project, which will be highly sought after by industry and strategic investors. Following our announcement in February this year that the CPC has completed a Scoping Study on the Karinga Lakes Potash Project, we have received significant interest in both CPC and its promising aMES ™ technology. In June this year, our joint venture partner at the Karinga Lakes Potash Project, Verdant Minerals was acquired by a UK based private equity firm at more than twice the prevailing market price before the acquisition was announced, highlighting the deep-value in the sector, that is gradually being recognized by astute investors. As evidenced by Parkway Minerals today, we expect the consolidation and rationalization trend in the sector to continue. In this regard, we believe the transaction between CPC and Parkway Minerals is not only well-timed, but highly synergistic as it combines complementary projects, technology and skills, and positions the merged-entity strongly as the emerging player in the fertiliser minerals sector. ”

Executive Chairman of Lions Bay, Mr John Byrne commented:

“This transaction is an important step in Lions Bay’s journey to unlocking value for money, by providing visibility into what is always a significant embedded value within CPC. We have supported the development of CPC and its proprietary mineral processing technology over the past two years and believe this transaction with Parkway creates a company with the critical-mass required to grow the core business and execute the ambitious business plan.

“As the major vendor of CPC into the transaction, we have agreed to assist Parkway Minerals conduct a relatively modest capital raise to support the transaction. As soon as major shareholders of both the Parkway and Davenport, we look forward to supporting the various management teams, to ensure that they have a strong growth trajectory moving forward. The merger of the CPC with the Parkway announcement and the accompanying presentation, we are equally excited about the opportunity of assisting Davenport receive the recognition it deserves. Although the Davenport team has been able to systematically assemble a portfolio of projects in Central Germany, which now represents the largest potash resource in Western Europe. We are pleased to be able to expose our shareholders to such opportunities. Lions Bay is focused on strategically leveraging the experience and network of the management team in the relatively high-risk resources sector, to create value for our shareholders. This transaction highlights how the investment in Lions Bay provides the opportunity for investors to gain exposure to the formation and development of resources focused companies and benefit from the experience of the Lions Bay management team. ”

Should the Transaction proceed as envisaged, Lions Bay will have strategic shareholdings in five listed public companies:

  • Fidelity Minerals) – focused on copper gold projects in Peru;
  • Elementos – the emerging global tin company;
  • Kalina Power – developing portfolio of waste heat power plants;
  • Parkway Minerals – Australian fertiliser minerals company.
  • Davenport Resources – owner of significant German potash projects.

The Transaction is subject to Parkway Minerals shareholder approval and a number of conditions precedent. Additional details about the acquisition of CPC by Parkway Minerals, can be found in the announcement released to the Australian Securities Exchange (ASX) by Parkway Minerals, as attached.

About Lions Bay Capital Inc.

Lions Bay Capital Inc. is a TSX-V listed Investment Issuer that is focused on high return investment opportunities, principally in mining, clean energy and clean technology sectors, where it provides public and private companies with strategic and financial support.

On behalf of the Board of Lions Bay.

John Byrne
Director
Tel: +61 3 9236 2800
[email protected]

Bahay Ozcakmak
Director
Tel: +61 3 9236 2800
[email protected]

For more information, please visit the corporate website at www.lionsbaycapital.com or contact the above.

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 NEWS RELEASE.

Cautionary Statement Regarding Forward-Looking Information

This press release contains “forward-looking statements” or “forward-looking statements” within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of removed, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are not, but generally not, identified by the words “will”, “plan”, “intends”, “may”, “will”, “could”, “expects” , “Anticipates” and similar expressions. Bay Lions Bay and other forward-looking statements are discussed in Lions Bay’s Management Discussion and Analysis which is available under the Company’s profile on www.sedar.com.

Forward-looking statements are available based on the Company. Although it may be wrong, they may prove to be incorrect. By their very nature, they do not have a high degree of reliance on these statements as the number of factors that could cause them to intentions expressed in such forward-looking statements. These factors include, but are not limited to, commodity prices, fluctuations in revenues and expenses, need for additional funding, availability of such funding of key employees, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.

The Company discovers any intention or obligation to publish or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Click here to connect with Lions Bay Capital Inc. (TSXV: LBI) for the Investor Presentation.

Source: www.newsfilecorp.com

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