VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 22, 2012) - CaiTerra International Energy Corporation ("CaiTerra" or the "Company") (TSX VENTURE:CTI) is pleased to announce that it has signed a definitive purchase and sale agreement to acquire certain undeveloped mineral rights in the Faust area of Alberta (the "Faust Property") from First Mountain Exploration Ltd. ("First Mountain") for the purchase price of approximately of $2.5 million in cash.
The Faust Property is located just north of the prolific Swan Hills oil field and south of the Town of Slave Lake. The lands forming the Faust Property are Crown leases with varying expiry dates. In the event that the purchase and sale is completed, CaiTerra expects to retain over 18,600 net acres (approximately 30 sections) of lands of interest and not subject to expiry for the next 3 years.
The purchase and sale will require the approval of First Mountain's shareholders, which approval First Mountain intends to obtain at its special meeting to be held on December 14, 2012. Subject to receipt of such shareholder approval and all regulatory approvals, including the approval of the TSX Venture Exchange, the purchase and sale of the Faust Property is expected to close before December 21, 2012, but in any event no later than December 31, 2012, or such later date as the Company and First Mountain may agree upon.
Details regarding the terms of the transaction are set out in the definitive purchase and sale agreement which will be filed on the Company's profile on SEDAR at www.sedar.com
Completion of the transaction is subject to a number of conditions, including but not limited to, TSX Venture Exchange acceptance and First Mountain shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all. The TSX Venture Exchange Inc. has in no way passed on the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
A Note regarding Forward Looking Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains forward looking statements and information concerning the anticipated closing date of the purchase and sale transaction and the Company's anticipated interests in the Faust Property. The Company cautions that there are no assurances or guarantees that the transaction will be completed as proposed or at all.
Although the Company believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations, actual production from the acquired assets may be greater or less than estimates; failure to obtain the necessary regulatory approval, stock exchange and other regulatory approvals on the timelines planned. Management has included the above summary of assumptions and risks related to forward looking information provided in this press release in order to provide security holders with a more complete perspective on the Company's future operations and such information may not be appropriate for other purposes.
The forward-looking statements and information contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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.