Altima Resources Ltd.

Altima Resources Ltd.

October 27, 2006 09:25 ET

Altima Announces Agreement to Acquire White Max Energy Inc. for Shares, $875,000 Private Placement, and Appointment of New Director and Chairman

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 27, 2006) - Altima Resources Ltd. (TSX VENTURE:ARH) (the "Company" or "Altima") is pleased to announce that it has entered into an agreement to acquire all of the issued and outstanding shares in the capital stock of White Max Energy Inc. ("White Max"), a private Alberta corporation (the "Acquisition"). White Max's assets consist of approximately $500,000 in cash, as well as licenses and bonds to act as an oil and gas operator in the Province of Alberta. In consideration for the Acquisition, the Company has agreed to issue 2,514,000 common shares to the shareholders of White Max at a deemed price of $0.25 per share, together with warrants to purchase an additional 2,514,000 common shares, exercisable for a period of one year from the date of issuance at $0.50 per share. The Acquisition is subject to acceptance for filing by the TSX Venture Exchange and any other regulatory approvals as may be required.

In addition, the Company is very pleased to announce the appointment of Mr. J. E. (Jim) O'Byrne, B.A. as a director and Chairman of the Company, effective immediately. Mr. O'Byrne is President of O'Byrne Resource Management Ltd. which provides oil and gas management and consulting services to oil and gas investors and operators from its Calgary location. Jim has served as officer and director of several private and public oil and gas companies throughout his extensive career in the Western Canadian oilpatch. Mr. O'Byrne has been a director of the Canadian Petroleum Association (CPA), the Canadian Association of Petroleum Landmen (CAPL) and the American Association of Petroleum Landmen (AAPL) and has played a major role in establishing operating standards for the oil and gas Industry through model form agreements. He has been recognized by all three Associations for his work and is a life member of CAPL. Mr. O'Byrne continues to do seminars for Industry groups and to provide expert witness to the Courts as well as conduct arbitration and mediation hearings relative to Industry joint interest issues.

The Company also announces that that it has negotiated, subject to acceptance by the TSX Venture Exchange (the "Exchange"), a private placement for gross proceeds of up to $875,000 by the issuance of up to 3,500,000 units at a price of $0.25 per unit, each unit to consist of one (1) common share and one(1) share purchase warrant, each warrant entitling the holder to purchase one additional common share, exercisable for a period of one year from the date of issuance at a price of $0.50 per share, provided that if over a period of twenty consecutive trading days commencing four months after the issue of the share purchase warrants the weighted average closing price of the Company's shares as traded on the Exchange exceeds $0.75, then Altima may give notice in writing to the holders of the share purchase warrants that the share purchase warrants shall expire at 5:00 p.m. (Vancouver time) on the 20th business day following delivery of such notice unless exercised by the holder of the share purchase warrants prior to such time (the "Private Placement").

Proceeds of $875,000 raised from this private placement will be used toward exploration and development of the Company's Chambers oil and gas property located in Alberta, and for general working capital. The Company may pay finders' fees in connection with the private placement, which will be payable in accordance with Exchange policies in cash.


Richard Switzer, President

Forward-Looking Statements:

Certain of the statements contained in this press release may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Statements or information regarding objectives of the board of directors are forward-looking statements. The words "intends" and "expects" and similar expressions are intended to identify forward-looking statements or information, although not all forward-looking statements or information contain these identifying words. Plans, intentions or expectations disclosed in any forward-looking statements or information should not be read as guarantees of future results or events, and will not necessarily be accurate indications of whether or the times at or by which such results or events will be achieved. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Altima, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Except as required by law, Altima expressly disclaims any intention and undertakes no obligation to update any forward-looking statements or information as conditions change.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this Press Release.

Contact Information

  • Altima Resources Ltd.
    Richard Switzer
    (604) 718-2800
    (604) 718-2808 (FAX)