Darold H. Parken

January 09, 2015 19:07 ET

Acquisition of Shares of Challenger Deep Resources Corp.

CALGARY, ALBERTA--(Marketwired - Jan. 9, 2015) - Further to disclosure requirements of applicable securities laws, Mr. Darold H. Parken (the "Shareholder") of Calgary, Alberta reports that on January 8, 2015, he acquired ownership and control over 4,200,000 common shares ("Common Shares") and 1,890,000 share purchase warrants ("Warrants") of Challenger Deep Resources Corp. (the "Corporation") from Mr. Ranjeet Sundher, a private individual pursuant to a share purchase agreement (the "Share Purchase Agreement") for aggregate consideration of $600 (the "Transaction"). Each Warrant entitles the holder to purchase one common share of the Corporation at an exercise price of $0.10 expiring October 9, 2017. The Common Shares are listed on the TSX Venture Exchange. The Common Shares and Warrants were acquired pursuant to the terms of a Share Purchase Agreement containing representations, warranties and covenants of the parties that are customary for transactions of this nature. The purpose of the transaction was to essentially equalize the shareholdings of Messrs. Parken and Sundher. Messrs. Parken and Sundher are both directors and co-founders of the Corporation.

Prior to the Transaction, the Shareholder owned or controlled 2,262,000 Common Shares, comprising approximately 4.0% of the issued and outstanding Common Shares of the Corporation. Following completion of the Transaction, the Shareholder now owns and has control over 6,462,000 Common Shares representing approximately 11.5% of the issued and outstanding Common Shares.

The Shareholder acquired the Common Shares for investment purposes. The Shareholder may acquire ownership or control over further securities of the Corporation in the future depending upon market circumstances. Such increase in ownership will depend on numerous conditions, including the price of the Common Shares and general market conditions.

The Common Shares issued to the Shareholder pursuant to the transaction were distributed pursuant to the exemptions from the prospectus requirements set out in section 2.5 of National Instrument 45-106 - Prospectus and Registration Exemptions.

Neither the issuance of this news release in connection with the matters disclosed in this news release nor the filing by the Shareholder of the report in accordance with applicable Canadian securities laws is an admission that an individual or entity named or otherwise referred to in this news release owns or controls any described securities or is a joint actor with another entity named or otherwise referred to in this news release.

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