CALGARY,
April 18, 2013 /CNW/ - NewNorth
Projects Ltd. ("NewNorth") (TSXV:NNP) today announced its financial
results for the year ended December 31,
2012.
Mr. Greg
Herndier, President and Chief Executive Officer of NewNorth,
reports a net loss after tax for the year ended December 31, 2012 of $2,046,000 which includes debenture interest of
$23,000.
After tax loss per share, basic and diluted is
$0.17.
Select information:
- On October 15, 2012, NewNorth
sold its 50% interest in GDC-NNP LP a partnership with the Gwich'in
Development Corporation, a corporation that operates independently
of but is wholly owned by the Gwich'in Tribal Council. The
partnership operated a warehouse and owned vacant land, both in
Inuvik, NT. The gross
proceeds of the sale were $100,000.
- On December 21, 2012, NewNorth
signed an agreement to sell the land it owned adjacent to
Cochrane, AB. The gross
proceeds from the sale were $2,000,000. The sale closed on March 1, 2013. On receipt of the proceeds
from the sale, a short-term loan to one of NewNorth's independent
directors was repaid in full in the amount of $547,856.
- On March 1, 2013, NewNorth signed
a conditional agreement to sell its 50% share in the Kinniburgh
South Limited Partnership ("Kinniburgh") (the "Chestermere
Transaction"). Kinniburgh owns approximately 70 acres of
residential land near Chestermere,
AB. The Chestermere
Transaction is subject to various conditions including but not
limited to receiving the approval of NewNorth's shareholders
("Shareholders"), the other limited partner of Kinniburgh and the
TSX Venture Exchange ("TSXV"). The board of directors of NewNorth
is holding a special meeting of Shareholders on April 30, 2013 where NewNorth will seek approval
for the Chestermere Transaction. The gross proceeds from the
sale are expected to be $3,500,000
and the closing date of the sale is expected to be on or about
May 7, 2013. The same party who
entered into the agreement to purchase the Kinniburgh interest had
also provided a short-term $500,000
loan to NewNorth on June 1,
2012. The sale agreement states that the loan will be
forgiven as part of the consideration but the accrued interest is
to be paid to the party that granted the loan on or before the
closing date. In the event that Chestermere Transaction is
not completed, NewNorth is obligated to repay the loan at the date
that the sale transaction would have closed.
NewNorth is an integrated land and building
development corporation operating in Alberta.
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 Chestermere Transaction and the
conditions surrounding such sale as well as the expected closing
date of such transaction and the anticipated gross proceeds to
NewNorth. 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.