MONTREAL,
Nov. 20, 2013 /CNW/ - Geovencap Inc.
(TSXV: GOV) ("Geovencap" or the "Company") and its wholly-owned
subsidiary 8100896 Canada Inc. (together, the "Companies")
announce the filing today of a notice of intention (the
"Notice") to file a proposal under the Bankruptcy and
Insolvency Act (Canada).
Pursuant to the Notice, PricewaterhouseCoopers Inc. ("PWC")
has been appointed as the trustee in the Companies' proposal
proceedings and will assist the Companies in their restructuring
efforts. This filing follows Geovencap strategic review of its
options caused by the lack of financing as previously announced on
April 15, 2013 and the subsequent
cease-trade order issued by the regulatory authorities.
For several months the Company has approached numerous potential
partners to obtain capital or enter into strategic partnerships,
joint venture agreements or sale of assets agreements. The
Companies have finally signed a Letter of Intent with Wolfden
Resources Corporation ("Wolfden") that provides for the sale
of its mining assets. Under the terms of the transaction, Wolfden
will pay the the Companies $125,000
in cash and issue $100,000 payable in
commons shares of Wolfden. The transaction is subject to certain
conditions, including Wolfden completing its due diligence review
of the Properties, the parties entering into a definitive agreement
on or before November 29, 2013, the
receipt of approval of the TSX Venture Exchange and a court order
authorizing the sale of the assets.
PWC will work with the Companies to complete the transaction.
The filing of the Notice has the effect of imposing an automatic
30-day stay of proceedings that will protect the Companies and
their assets from the claims of creditors while the Companies
pursue their restructuring efforts. This 30-day period may be
renewed with the authorization of the Quebec Superior Court.
About GeoVenCap
GeoVenCap is a mineral company focused on
exploration principally for silver and gold in northern
New Brunswick.
Forward-Looking Statements. This news
release contains discussion of items that may constitute
forward-looking statements within the meaning of securities laws
that involve risks and uncertainties. Although the company believes
the expectations reflected in such forward-looking statements are
based on reasonable assumptions, it can give no assurances that its
expectations will be achieved. Factors that could cause actual
results to differ materially from expectations include the effects
of general economic conditions, actions by government authorities,
uncertainties associated with contract negotiations, additional
financing requirements, market acceptance of the Company's products
and competitive pressures. These factors and others are more fully
discussed in Company filings with Canadian securities regulatory
authorities.
"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."
SOURCE GeoVenCap Inc.