Vancouver, BC / ACCESSWIRE / September 25, 2014 / True Zone Resources Inc. ("True Zone" or the "Company") (CSE: TAZ) announces the plan of arrangement (the "Arrangement" or "Arrangement Agreement") with its six wholly owned subsidiaries - Patch Industries Ltd. ("Patch"), Frond Resources Ltd. ("Frond"), Oak Cliff Resources Ltd. ("Oak"), Moshi Mountain Industries Ltd. ("Moshi"), Elm Resources Inc. ("Elm") and Rocket Resources Limited ("Rocket") (collectively the "Subsidiaries").
Pursuant to the Arrangement, the Company will grant sub-options with respect to six portions of its Tanzania Property (the "Assets") to the Subsidiaries as described in the following table:
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |Name of the Subsidiary |Description of the property being optioned |Size of |Prospecting |Consideration to be Paid by Subsidiary | | | |the |Licence | | | | |property |Number | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| |Patch Industries Ltd. |80% interest in theGombero East Property located in Handeni Tanga Regional District of Tanzania. The property is centered on: 5°33’34”S and 37°50’13.3”E. The corner locations are: |approx. 30 hectares|PL 6905/2011|1)$25,000 to AFGF Holdings (Tanzania) Limited; | | |NW 5o33’ 23.6” 37o50’ 05.4” | | |2) 500,000 common shares of the subsidiary to be issued to True Zone Resources Inc. on or before the date that is one year from the date of the sub-option agreement;| | |NE 5o33’ 23.6” 37o50’ 21.2” | | |3) $75,000 in exploration expenses to be incurred on the Gombero East Property within one year from the date of the sub-option agreement; and | | |SW 5o33’ 43.1” 37o50’ 05.4” | | |4) an additional $75,000 in exploration expenses to be incurred Gombero East Property within two years from the date of the sub-option agreement. | | |SE 5o33’ 43.1” 37o50’ 21.2” | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| |Frond Resources Ltd. |80% interest in theKwedilima West Property located in Handeni Tanga Regional District of Tanzania. The property is centered on: 5°33’40”S and37°50’28.6”E. The corner locations are: |approx. 30 hectares|PL 6905/2011|1)$25,000 to AFGF Holdings (Tanzania) Limited; | | |NW 5o33’ 30.1” 37o50’ 21.2” | | |2) 500,000 common shares of the subsidiary to be issued to True Zone Resources Inc. on or before the date that is one year from the date of the sub-option agreement;| | |NE 5o33’ 30.1” 37o50’ 35.9” | | |3) $75,000 in exploration expenses to be incurred on the Kwedilima West Property within one year from the date of the sub-option agreement; and | | |SW 5o33’ 49.6” 37o50’ 21.2” | | |4) an additional $75,000 in exploration expenses to be incurred Kwedilima West Property within two years from the date of the sub-option agreement. | | |SE 5o33’ 49.6” 37o50’ 35.9” | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| |Oak Cliff Resources Ltd.|80% interest in theGombero Lion Property located in Handeni Tanga Regional District of Tanzania. The property is centered on: 5°33’34”S and 37°49’52.8”E.The corner locations are: |approx. 30 hectares|PL 6905/2011|1)$25,000 to AFGF Holdings (Tanzania) Limited; | | |NW 5o33’ 27.5” 37o49’ 40.2” | | |2) 500,000 common shares of the subsidiary to be issued to True Zone Resources Inc. on or before the date that is one year from the date of the sub-option agreement;| | |NE 5o33’ 27.5” 37o50’ 05.4” | | |3) $75,000 in exploration expenses to be incurred on the Gombero Lion Property within one year from the date of the sub-option agreement; and | | |SW 5o33’ 40.5” 37o49’ 40.2” | | |4) an additional $75,000 in exploration expenses to be incurred Gombero Lion Property within two years from the date of the sub-option agreement. | | |SE 5o33’ 40.2” 37o50’ 05.4” | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| |Moshi Mountain |80% interest in theKwedilima Cheetah Property located inHandeni Tanga Regional District of Tanzania. The property is centered on: 5°33’50”S and 37° 50’48.5”E. The corner locations are:|approx. 30 hectares|PL 6905/2011|1)$25,000 to AFGF Holdings (Tanzania) Limited; | |Industries Ltd. |NW 5o33’ 43.1” 37o50’ 35.9” | | |2) 500,000 common shares of the subsidiary to be issued to True Zone Resources Inc. on or before the date that is one year from the date of the sub-option agreement;| | |NE 5o33’ 43.1” 37o51’ 01.1” | | |3) $75,000 in exploration expenses to be incurred on the Kwedilima Cheetah Property within one year from the date of the sub-option agreement; and | | |SW 5o33’ 56.1” 37o50’ 35.9” | | |4) an additional $75,000 in exploration expenses to be incurred Kwedilima Cheetah Property within two years from the date of the sub-option agreement. | | |SE 5o33’ 56.1” 37o51’ 01.0” | | | | | | | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| |Elm Resources Ltd. |80% interest in theGombero West Property located in Handeni Tanga Regional District of Tanzania. The property is centered on: 5°33’53”S and 37°51’09.5”E. |approx. 30 hectares|PL 6905/2011|1)$25,000 to AFGF Holdings (Tanzania) Limited; | | |The corner locations are: | | |2) 500,000 common shares of the subsidiary to be issued to True Zone Resources Inc. on or before the date that is one year from the date of the sub-option agreement;| | |NW 5o33’ 15.6” 37o49’ 23.4” | | |3) $75,000 in exploration expenses to be incurred on the Gombero West Property within one year from the date of the sub-option agreement; and | | |NE 5o33’ 21.1” 37o49’ 40.2” | | |4) an additional $75,000 in exploration expenses to be incurred Gombero West Property within two years from the date of the sub-option agreement. | | |SE 5o33’ 40.5” 37o49’ 40.2” | | | | | |Intermediate sSW 5o33’ 40.5” 37o49’ 31.8” | | | | | |Intermediate SW 5o33’ 27.5” 37o49’ 31.8” | | | | | |SW 5o34’ 02.6” 37o51’ 01.1” | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| |Rocket Resources Limited|80% interest in theKwedilima East Property in Handeni Tanga Regional District of Tanzania. The property is centered on 5°33’53”S and 37°51’09.5”E. |approx. 30 hectares|PL 6905/2011|1)$25,000 to AFGF Holdings (Tanzania) Limited; | | |The corner locations are: | | |2) 500,000 common shares of the subsidiary to be issued to True Zone Resources Inc. on or before the date that is one year from the date of the sub-option agreement;| | |NW 5o33’ 43.1” 37o51’ 01.1” | | |3) $75,000 in exploration expenses to be incurred on the Kwedilima East Property within one year from the date of the sub-option agreement; and | | |NE 5o33’ 43.1” 37o51’ 17.9” | | |4) an additional $75,000 in exploration expenses to be incurred Kwedilima East Property within two years from the date of the sub-option agreement. | | |SW 5o34’ 02.6” 37o51’ 01.1” | | | | | |SE 5o34’ 02.6” | | | | | |37o51’ 17.9” | | | | | | | | | | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
The Arrangement will result in every Company's shareholder receiving one share of each Subsidiary for every 100 shares held in the Company as of the share distribution record date, which will be announced by a separate news release.
The Arrangement will have to be approved by a special resolution of the shareholders of the Company and by the Supreme Court of British Columbia, and will have to be filed with the Corporate Registry of British Columbia before it becomes effective.
The Company will cover the costs associated with the Arrangement.
The Arrangement Agreement also provides that if the Arrangement receives the required shareholder and court approvals, then Patch will amalgamate with Patchouli Capital Inc. ("Patchouli Capital"), Frond will amalgamate Frond Capital Inc. ("Frond Capital"), Oak will amalgamate with Oak Cliff Capital Inc. ("Oak Capital"), Moshi will amalgamate with Moshing Capital Inc. ("Moshing Capital"), Elm will amalgamate with Elmira Capital Inc. ("Elmira Capital") and Rocket will amalgamate with Rocket Age Capital Inc. ("Rocket Capital") under separate amalgamation agreements (the "Amalgamations").
The Amalgamations will have to be approved by the shareholders of the Company the shareholders of Patchouli Capital, Frond Capital, Oak Capital, Moshing Capital, Elmira Capital and Rocket Capital and amalgamation applications will have to be filed with the Corporate Registry of British Columbia before the Amalgamations become effective.
The details of the Arrangement and the Amalgamations will be provided in the management information circular, which will be mailed to the shareholders of the Company and will be available on www.sedar.com under the profile of the Company.
The Company intends to file a technical NI 43-101 compliant geological report regarding the Tanzania Property, which it is optioning from AFGF Holdings (Tanzania) Limited, on www.sedar.com under the profile of the Company.
There can be no guarantee that all required approvals regarding the Arrangement or the Amalgamations will be obtained.
For more information regarding the Company can be viewed at http://truezoneresources.com. Or Email [email protected].
True Zone Resources Inc.
Per:
"Souhail Abi-Farrage"
CEO, President and Director
Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Not for Distribution in the United States or to U.S. Persons.
SOURCE: True Zone Resources Inc.