GA Capital Corp.

June 01, 2009 17:24 ET

GA Capital Corp. Announces Termination of Proposed Qualifying Transaction With Kimpar Resources Inc.

TORONTO, ONTARIO--(Marketwire - June 1, 2009) - GA Capital Corp. (TSX VENTURE:GAC.P) ("GAC"), a capital pool company as defined under Policy 2.4 of the TSX Venture Exchange (the "Exchange" or "TSX Venture") announces the termination of the proposed "qualifying transaction" with Kimpar Resources Inc. ("Kimpar"). As previously disclosed GAC and Kimpar had entered into a letter of intent dated December 18, 2008, as amended on each of March 31 and April 30, 2009 (the "LOI") setting out the terms of the previously announced proposed transaction with Kimpar, pursuant to which GAC intended to complete a business combination with Kimpar (the "Transaction"). The LOI terminated on May 31, 2009 and in accordance with the terms thereof was not extended by GAC and Kimpar. Accordingly, the Transaction will not proceed.

GAC has also advised Kimpar of its obligation to repay the $200,000 secured loan (the "Loan"), together with accrued interest, that GAC had previously provided to Kimpar. The Loan matured on May 31, 2009.

GAC will work towards identifying and completing a "qualifying transaction". GAC expects its common shares to resume trading on the Exchange on June 3, 2009.

Neither 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.

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