Radius Resources Corp.
TSX VENTURE : RAX

April 16, 2010 14:17 ET

Radius Resources Corp.: Court Approval of BIA Proposal

CALGARY, ALBERTA--(Marketwire - April 16, 2010) -

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

RADIUS RESOURCES CORP. ("Radius") (TSX VENTURE:RAX) announced today that further to a proposal ("Proposal") filed by Radius pursuant to the provisions of the Bankruptcy and Insolvency Act ("BIA") on March 19, 2010, Radius received approval of the unsecured creditors of the Corporation for the Proposal at the creditors meeting held April 6, 2010. Radius subsequently received a order issued by the Court of Queen's Bench of Alberta on April 13, 2010 (the "Court Order") providing, among other things, approval of:

  1. the Proposal;
  2. the Articles of Reorganization of Radius attached to the Proposal;
  3. the sale by Radius to Argosy Energy Inc. ("Argosy"), in accordance with the terms of the Proposal, of all of the common shares of Radius' issued and outstanding capital pursuant to the terms of the Purchase and Sale Agreement made between Radius and Argosy dated March 18, 2010; and
  4. the cancellation, in accordance with the terms of the Proposal, of:
    1. all Existing Radius Equity ( as such term is defined in the Proposal), without payment or consideration of any other right; and;
    2. any and all accrued dividends or interest in respect of any Existing Radius Equity (as such term is defined in the Proposal).

A copy of the Proposal and Court Order may be obtained at www.alger.ca or under Radius' profile on SEDAR at www.sedar.com.

Obtaining the Court Order was a condition, among others, to proceeding with the purchase and sale with Argosy. Radius will provide updates as the purchase and sale transaction proceeds.

Radius is a junior oil and gas company engaged in the exploration for, and development and production of, crude oil and natural gas focusing in the Peace River Arch region of central Alberta.

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.

Contact Information

  • Radius Resources Corp.
    Mr. David R.P. Mears
    Chairman & CEO
    (403) 265-9393
    (403) 265-9224 (FAX)
    or
    Radius Resources Corp.
    Suite 200, 816 - 7th Avenue SW
    Calgary, Alberta T2P 1A1