Allied Northern Resources Ltd.

November 02, 2006 17:00 ET

Allied Northern Resources Ltd.-Press Release

TORONTO, ONTARIO--(CCNMatthews - Nov. 2, 2006) - Allied Northern Resources Ltd. (the "Company") is pleased to announce that the Company has completed the sale of its wholly owned subsidiary Igloo Imports Inc. ("Igloo") to Barbara Mourin (the "Purchaser"), pursuant to a share purchase agreement dated October 31, 2006 (the "Share Purchase Agreement").

Pursuant to the terms of the Share Purchase Agreement, the Purchaser has acquired all of the issued and outstanding common shares in the capital of Igloo. In exchange for acquiring the issued and outstanding shares of Igloo, the Purchaser agreed to assume the existing debt of Igloo (approximately $110,000), and is required to make certain profit sharing payments to the Company.

The profit sharing provisions in the Share Purchase Agreement require the Purchaser to cause Igloo to pay to the Company, on an annual basis, 25% of all profits earned by Igloo. This obligation will continue for a period of five years from the closing date or until the sum of $200,000 has been paid to the Company. Thereafter the Purchaser is required to cause Igloo to pay to the Company, annually, 10% of the profits of Igloo for a further five year period.

The Purchaser is arm's length to the Company.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Allied Northern Resources Ltd.
    Stanley Mourin
    (416) 922-5111
    (416) 922-6290 (FAX)