Tri-River Ventures Inc. - Company Update
May 01 2012 - 11:07PM
PR Newswire (Canada)
VANCOUVER, May 4, 2012 /CNW/ - Concurrent with the posting of the
audited financial statements and management discussion and analysis
of Tri-River Ventures Inc. (the "Company") , the Company wishes to
provide the following property update. On March 31, 2011, the
Company entered into a Purchase and Sale Agreement with Sino Spirit
Capital Investment Holding Limited ("Sino Investment") to acquire
Sino Investment's 100% equity interest in Sino Spirit Group Limited
("Sino Group") which owns a 60% equity interest in Qinghai Lenghu
Kunhu Potash Company Ltd. ("Lenghu Potash"). Lenghu Potash owns a
mining permit in Qinghai Province of the People's Republic of
China, covering a contiguous area of 23.8 km(2) in the centre of
the Kunteyi Salt Lake area, which has a total area of about 200
km(2). Lenghu Potash is currently producing potash fertilizer from
this property. The agreed purchase consideration consisted of cash
payments of $11,583,000 (RMB78,000,000) in three installments and
share issuances having an aggregate value of up to $4,455,000
(RMB30 million). The first refundable installment of $4,443,260
(RMB30,000,000) was made on April 4, 2011. The second refundable
installment was due on October 4, 2011. By way of an executed
amendment ("Amendment") between the parties dated April 20, 2012
which formalized an early verbal variation between the parties, the
deadline for payment of the second installment has been extended
until (i) the Company has completed its due diligence to its
satisfaction, including receipt and review of audited financial
statements of Lenghu Potash, (2) the parties have entered into a
detailed definitive agreement, and (3) the Company has completed an
equity or debt financing sufficient, with working capital, to pay
the second installment. Thereafter or concurrently, the parties
would expect to close the transaction, subject to TSX Venture
Exchange (the "Exchange") acceptance. In the interim, pursuant to
the Amendment, and in consideration of having the use of the first
installment funds, Sino Investment has agreed to pay annually the
Company the greater of (i) 16.67% of the net annual profit of
Lenghu Potash starting from its fiscal year ended December 31,
2011, and (ii) RMB3.334 million (approximately $500,000), prior to
closing of the transaction. On March 22, 2011, the Company entered
into a Share Exchange Agreement with Strong Rising International
Limited ("Strong Rising") to acquire Strong Rising's wholly owned
subsidiary, Taiji Resources Ltd. ("Taiji"). Taiji owns three early
stage potash exploration properties in Saskatchewan. The Company
conditionally agreed to acquire all of the issued and outstanding
shares of Taiji in exchange for 11,360,000 Company shares and the
indirect assumption of debt of approximately $1.75 million. The
closing of the Agreement has been subject to several conditions
including obtaining sufficient evidence of value and completion of
due diligence satisfactory to Company management. The NI43-101
report has been completed and filed with the Exchange, and
management have received audited financial statements of Taiji for
the fiscal year ended January 31, 2011, and the two previous fiscal
years. However, Company management are not satisfied with the due
diligence results and are seeking: (i) a deferral of Taiji's debt,
with demand for payment subject to successful exploration of
Taiji's properties, and (ii) completion of a substantial concurrent
financing sufficient to fund exploration activities on Taiji's
properties. Pursuant to section 10 of the Agreement, the deadline
for closing the transaction was December 31, 2011 wherein either
party may unilaterally terminate the Agreement. Neither party has
done so to date with negotiations ongoing. The Company also wish to
announce that Michael Woods has resigned as a director of the
Company, but will continue to serve as legal counsel of the
Company. The Company management expresses sincere thanks to Mr.
Woods for his invaluable contribution to the Company's business
endeavor. About Tri-River Tri-River is a Canadian based exploration
company focusing on acquisition, exploration and development of
mineral resource properties. The Issuer is currently evaluating
salt lake potash producing operations in Qinghai, China and potash
exploration properties in Saskatchewan, Canada. Tri-River's shares
are listed on the TSX Venture Exchange under the symbol TVR.
Forward-Looking Statements: This press release contains
forward-looking statements based on current expectations.
Forward-looking statements entail various risks and uncertainties
that could cause actual events or results to differ materially from
those reflected in forward-looking statements. Risks and
uncertainties about Tri-River's business are more fully discussed
in Tri-River's disclosure materials under the heading "Risk
Factors" and elsewhere in Tri-River's MD&A, Financial
Statements and other periodic filings with Canadian securities
regulators and on SEDAR. The Issuer does not assume any obligation
to update forward-looking statements except as required under
applicable law. Tri-River Ventures Inc. CONTACT: Y.B. Ian He (604)
306-5867Barry Sheng (604) 601-8366
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