CALGARY,
March 20, 2013 /CNW/ - NewNorth
Projects Ltd. ("NewNorth" or the "Corporation") (TSX VENTURE: NNP)
is pleased to provide the following operational and corporate
updates in respect of the Corporation's assets and its future
operational plans.
NewNorth's Assets
On March 1, 2013,
the Corporation closed a previously announced purchase and sale
transaction with an arm's length party in respect of the
disposition of its 185 acre wholly-owned country residential
development property near Cochrane,
Alberta, for net proceeds of approximately $1.9 million.
The Corporation currently holds a 50% interest
in the Riviera Suites Hotel Limited Partnership (the "RSHLP"). The
RSHLP holds commercial land in downtown Fort McMurray, Alberta. The Corporation
entered into a conditional purchase and sale agreement with an
arm's length party to dispose of its 50% interest in the RSHLP (the
"Fort McMurray Transaction"). The
Fort McMurray Transaction is expected to close in the first half of
2013 with expected gross proceeds of approximately $5 million ($2.5
million net) less applicable realtor fees.
The Corporation recently announced that it had
entered into a purchase and sale agreement (the "Agreement") with
an arm's length party for the sale of its interest in the
Kinniburgh South Limited Partnership (the "Partnership") that holds
development property near Chestermere,
Alberta, for gross proceeds of $3.5
million (the "Chestermere
Transaction"). The Agreement was amended on March 14, 2013, whereby the purchaser waived its
conditions and the closing date of the Agreement was amended to on
or about April 30, 2013. The
Chestermere Transaction remains subject to various conditions
including but not limited to receiving the approval of the
Corporation's shareholders ("Shareholders"), the other limited
partner of the Partnership and the TSX Venture Exchange ("TSXV").
The board of directors of the Corporation (the "Board") has decided
to hold a special meeting of Shareholders on or about April 30, 2013 whereat the Corporation will seek
approval for the Chestermere Transaction. Notice of the special
meeting and accompanying management information circular will be
provided to Shareholders in due course in accordance with
applicable laws.
Assuming completion of both the Fort McMurray
Transaction and the Chestermere Transaction, the Corporation's
remaining operational asset will be its 50% interest in a 408 acre
development project adjacent to Okotoks,
Alberta (the "Sandstone Asset").
NewNorth's Future Operational Plans
Assuming completion of the Fort McMurray
Transaction and the Chestermere
Transaction, the Corporation will hold approximately $6.8 million in cash as well as its interest in
the Sandstone Asset. Given the nature of the market in which the
Corporation operates and the opportunities currently available to
the Corporation, the Board has determined that it is in the best
interests of the Corporation to seek offers and alternatives in
disposing of its interest in the Sandstone Asset.
The Corporation has provided working termination
notices to certain of its staff and will be continuing to minimize
its general and administrative costs on a going forward basis.
Cautionary Note Regarding Forward-Looking Statements
Except for the statements of historical fact
contained herein, certain information presented herein constitutes
"forward-looking statements". More particularly, this press release
contains statements concerning the sale of the Fort McMurray
Transaction, the Chestermere Transaction, the future disposition of
the Sandstone Asset, the timing of the special meeting of
Shareholders, certain conditions surrounding such transactions and
the future operational plans of the Corporation. The
forward-looking statements contained in this document are solely
opinions and forecasts which are uncertain and subject to risks.
Forward-looking statements include but are not limited to
uncertainties and other factors which may cause the actual results,
performance or achievements of the Corporation to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. These
forward-looking statements are not guarantees of future performance
and are subject to a number of known and unknown risks and
uncertainties. Accordingly, readers are cautioned that the
assumption used in the preparation of the forward-looking
statements, although considered reasonable at the time of
preparation may prove to be imprecise and, as such undue reliance
should not be placed on forward-looking statements.
The forward-looking statements contained in this
press release are made as of the date of this press release. Except
as required by law, the Corporation disclaims any intention and
assumes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by applicable securities law.
Additionally, the Corporation undertakes no obligation to comment
on the expectations of, or statements made, by third parties in
respect of the matters discussed above.
Neither the TSXV nor its Regulation
Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
release.
SOURCE NewNorth Projects Ltd.