Canadian Phoenix Resources Corp.
TSX VENTURE : CPH

Canadian Phoenix Resources Corp.

July 30, 2009 20:00 ET

Canadian Phoenix Resources Corp.: Corporate Update

CANADIAN PHOENIX - CHANGE OF AUDITORS SERRANO ENERGY LTD. - DEBT FINANCING MARBLE POINT ENERGY LTD. - CHANGE IN DIRECTOR & OFFICERS

CALGARY, ALBERTA--(Marketwire - July 30, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

CANADIAN PHOENIX RESOURCES CORP. ("Canadian Phoenix" or the "Corporation") (TSX VENTURE:CPH) provides the following corporate updates:

CANADIAN PHOENIX - CHANGE OF AUDITORS

The Corporation is pleased to announce that it has appointed Deloitte & Touche LLP, Chartered Accountants as auditor of the Corporation effective July 15, 2009. The resignation of the Corporation's former auditor, PricewaterhouseCoopers LLP, was accepted by the Corporation effective July 15, 2009.

SERRANO ENERGY LTD. - DEBT FINANCING

Serrano Energy Ltd. ("Serrano"), a company owned as to 55.7% by Canadian Phoenix, entered into a credit facility dated July 20, 2009 with a private mezzanine lender. Michael Atkinson, a director of Canadian Phoenix, acted as an agent for the lender and may participate in the credit facility. The maximum amount that may be borrowed by Serrano under the credit facility is $8.1 million and bears interest at 15% per annum. The maturity date of the credit facility is March 31, 2010. The credit facility is secured by a debenture and a general security agreement over the assets of Serrano and such security is subordinate to the security of the existing senior lender. Serrano has drawn an initial amount of $5.1 million for the purpose of satisfying outstanding accounts payable. A fee of $100,000 has been paid in cash and a bonus of 400,000 common shares of Serrano has been issued as an additional fee, subject to certain anti-dilution provisions. The common shares will have a four month hold period. In the event that Serrano is unable to raise no less than $6.0 million in additional equity prior to December 31, 2009, a fee of $800,000 is payable and the previously issued bonus shares shall be cancelled. Additional bonus shares are issuable to the lender should Serrano complete an equity financing at a price per share of less than $2.00 prior to the maturity date.

MARBLE POINT ENERGY LTD. - CHANGE IN DIRECTOR & OFFICERS

For personal reasons, Mr. David Hall has resigned as a director and officer of Marble Point Energy Ltd. ("Marble Point"), a company owned as to 56.51% by Canadian Phoenix, and Mr. John Zang has resigned as an officer of Marble Point. In addition, Mr. Earl Hitchcock has been named as Marble Point's Chief Operating Officer.

Canadian Phoenix Resources Corp. is a publicly-traded junior oil and gas exploration, development and production company with operations in Western Canada. Canadian Phoenix is pursuing a corporate strategy of being a consolidator of undervalued oil and gas assets located in the Western Canadian Sedimentary Basin. Strategic corporate acquisitions promote partnerships for the future development of acquired or targeted oil and gas assets. Canadian Phoenix's shares trade on the TSX Venture Exchange under the symbol "CPH".

FORWARD-LOOKING STATEMENTS: This news release contains forward-looking information, including but not limited to Serrano's ability to raise future equity and future participation in the credit facility. All statements and information other than statements of historical fact are forward-looking information. In some cases, forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the control of Canadian Phoenix, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Canadian Phoenix will derive therefrom. The forward-looking statements and information contained in this news release are made as of the date hereof and Canadian Phoenix 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.

Contact Information

  • Canadian Phoenix Resources Corp.
    Robert Chenery
    Interim Chief Executive Officer
    (403) 920-0040
    or
    Canadian Phoenix Resources Corp.
    Adeline Martin
    Interim Chief Financial Officer
    (403) 705-1192