NEWS RELEASE TRANSMITTED BY MARKETWIRE
FOR: Greenock Resources Inc.
TSX VENTURE SYMBOL: GKR
April 5, 2012
Greenock Resources: Equity Private Placement and Update
TORONTO, ONTARIO--(Marketwire - April 5, 2012) - Greenock Resources Inc. (TSX
VENTURE:GKR) ("Greenock") announces it is offering a non-brokered
equity private placement at $0.05 per Common Share with an attached full common
share purchase warrant that is eligible to purchase a Common Share at a price
of $0.10 per share for a period of 36 months from the date of closing. The
maximum offering is $100,000. These funds will be used advance corporate goals
and restructure Greenock to move forward with future resource development
As previously announced the conditions to satisfy the Letter Agreement dated
October 5, 2011 for a private company Quatern Holdings Limited
("Quatern") or its nominee to acquire 87.5% of the shares of PTM
Minerals (Cayman) Ltd. ("PTM") have not been completed. PTM is a
wholly owned subsidiary of Greenock. The parties to the Letter Agreement are
now in discussion regarding a new closing date and revising terms of the
agreement to reflect the current status of outstanding conditions and the
situation in the Democratic Republic of Congo ("DRC").
A US $250,000 Promissory Note to PTM from Precious Metals Investments
("PMI") has matured. PMI has filed a Statement of Claim with PTM and
Greenock requesting payment. Greenock will be filing a Statement of Defense.
The repayment of the PTM Promissory Note was one of the completion items that
Quatern had agreed to repay as part of the transaction to acquire 87.5% of the
shares of PTM. PTM has been in discussion with PMI regarding arrangements for
the PTM Promissory Note.
As outlined in a press release dated February 21, 2012, Greenock had been
informed of events in the DRC by Eurasian Natural Resources Corporation
("ENRC") that challenges the mineral rights of PTM. PTM disagrees
with the statements and actions regarding Kakanda ownership rights. Based on
opinions from PTM's DRC legal counsel it would appear that the proper
procedures, notification and approvals for the rescinding of mineral licenses
in DRC have not been followed and that the revocation of PTM's ownership
of the Kakanda tailings is invalid. Given the limited financial resources of
Greenock and PTM, defense options to protect Kakanda rights are limited and as
such are still under review.
Greenock is completing the audit of Financial Statements for the December 31,
2011 year end. The audit will include a detailed review on all the aspects of
the Kakanda project status and will be incorporated into the disclosures of the
December 31, 2011 Financials and Management Discussion and Analysis. Initial
review by the Auditors based on new IFRS accounting guidelines have recommended
that the capitalized book value of the Kakanda project will have to be written
down to $10,000. As of September 30, 2011, the Kakanda project had a
capitalized book value of $5,575,076 The IFRS accounting rules do allow
Greenock to write up the value of the Kakanda project in the future if
circumstances permit and Greenock is able to demonstrate a recovery value. The
IFRS accounting rules are forward looking and the emphasis is on what is
recoverable and not on what has been spent in the past.
From an economic perspective, the May 25, 2008 NI 43-101 report on the Kakanda
project demonstrated there is the potential for a large and economically viable
copper / cobalt mine and processing plant project at the Kakanda site.
Sensitivity analysis on the Kakanda tailings reprocessing project development
alone forecast a Net Present Value of US $261.6 million at a 20% discount or a
55.3% Internal Rate of Return ($3.00 per lb. Copper and $15.00 per lb. Cobalt)
(2008 capital cost assumptions with no royalty, tax or carried interest
burdens). At this time, these assumptions would require updates to reflect
current circumstances including the ongoing problems with title uncertainty and
other challenges in the DRC.
Greenock Resources Inc. is a Canadian based international mineral development
company that focuses on developing a portfolio of natural resource properties.
Shares outstanding: 32,239,479.
The Kakanda copper / cobalt project in the Central African Copper Belt is
adjacent to the operating Tenke copper / cobalt mine and plant presently being
operated and expanded by Freeport McMoran and Lundin Mining. The Kakanda
tailings reprocessing project has NI 43-101 measured and indicated resources of
18.5 million tonnes with an average grade of 1.25% copper and 0.15% cobalt. The
adjacent Kakanda hard rock deposits have a historical resource of 18.6 million
tonnes with an average grade of 3.19% copper and 0.19% cobalt.
Greenock holds a 100% interest in the Needles gold / silver property located in
the Arrowhead mining district of Nye County, Nevada. The property is
approximately 40 miles southeast of the Barrick - Kinross Round Mountain Gold
Mine. The Needles property has had historical underground mining for gold and
silver in the early 1920's.
This press release includes certain "Forward-Looking Statements"
within the meaning of applicable securities laws. Other than statements of
historical fact, all statements are "Forward-Looking Statements" that
involve such various known and unknown risks, uncertainties and other factors.
There can be no assurance that such statements will prove accurate. Results and
future events could differ materially from those anticipated in such
statements. Readers of this press release are cautioned not to place undue
reliance on these "Forward-Looking Statements". Michael Newbury,
P.Eng., is the qualified person who has reviewed this material on behalf of the
Company. All dollar amounts are noted in Canadian dollars unless otherwise
stated in this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Greenock Resources Inc.
James S. Hershaw
CFO & Vice President, Corporate/Mineral Development
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.
INDUSTRY: Manufacturing and Production - Mining and Metals
-0--0- Apr/05/2012 18:59 GMT
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