RENO, Nev.--(BUSINESS WIRE)--Consolidated Goldfields Corporation (“Consolidated” or the “Company”) (CDGF) is pleased to announce it has acquired mineral rights in three properties in Alberta and Manitoba, Canada from 1824455 Alberta Ltd. (“182”) that the Company believes are strategically located for the exploration and development of frac sand. The purchase price was $2.75 million, payable through aggregate cash payments of $50,000, an additional $50,000 within 45 days of the closing and an additional $175,000 upon the Company’s completion of certain financing transactions.
In addition, the Company issued 23.5 million shares of its common stock to 182 with an additional 23.5 million shares issued and held in escrow, with a proxy granted to the Company to be released to 182 upon the achievement of certain milestones. The Company has also granted royalties to 182 in an aggregate annual amount of $225,000 until commercial production is achieved, at which time 182 will be entitled to a production royalty of 2% of the proceeds received by the Company from the sale of minerals from the properties. Feisal Somji, a director of the Company, is a consultant to 182.
Consolidated Goldfields President and CEO, Marc J. Andrews commented, “We are very excited about this exceptional opportunity and new direction for the Company. The emerging frac sand/proppant industry has already seen sizeable growth in its early stages of development and is expected to grow annually at a rapid rate for the foreseeable future. The exceptional land package that we have acquired based upon the size, quality, and location of our projects make us an immediate and important player in the Canadian frac sand market and beyond.”
Mr. Andrews continued, “Our goal is to become the leading frac sand producer in Canada, and then diversifying into other countries that are coming online, as future demand around the world is forecast to grow exponentially. We see this as a rare opportunity to enter into a relatively young frac sand market with outstanding growth potential, positioning ourselves to become a major player in an industry without a ceiling.”
The Company also announced that its 2015 special meeting of shareholders will be held on Monday, January 12, 2015. The location and time of the meeting will be included in the proxy materials, which will be mailed to shareholders in advance of the meeting. Shareholders of record as of the close of business on Friday, December 19, 2014, will be entitled to notice of and to vote at the special meeting.
The purpose of the special meeting will be:
- to approve the amendment of the Company’s Articles of Incorporation to change the name of the Company from “Consolidated Goldfields Corporation” to “Brilliant Sands Incorporated”;
- to approve the amendment of the Company’s Articles of Incorporation to effect a 1-for-3 reverse stock split of its issued and outstanding common stock; and
- to transact any other business properly brought before the meeting or any adjournment or postponement of the meeting.
Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking statements can be identified by, among other things, the use of forward-looking language, such as the words “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “may,” “will,” “would,” “could,” “should,” “seeks,” or “scheduled to,” or other similar words, or the negative of these terms or other variations of these terms or comparable or similar language, or by discussion of strategy or intentions. Such forward-looking statements include, without limitation, statements regarding future business strategy, plans and goals and other statements that are not historical facts. Forward-looking statements address activities, events or developments that the Company expects or anticipates will or may occur in the future, and are based on current expectations and assumptions. Although management believes that its expectations are based on reasonable assumptions, it can give no assurance that these expectations will prove correct. The Company does not intend to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws. A copy of the Company's report for the year ending December 31, 2013 can be found on the OTC Pink marketplace website at www.otcmarkets.com.