Arak Resources Ltd.
TSX VENTURE : AAC

December 22, 2015 14:58 ET

Arak Resources Ltd.: Project Negotiations

MISSION, BRITISH COLUMBIA--(Marketwired - Dec. 22, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Management of Arak Resources Ltd. ("Arak" or the "Company") (TSX VENTURE:AAC) is pleased to announce that the Company is in the process of formalising a share purchase agreement with a private Panamanian company, Monterra SA ("Monterra") whereby the Company, subject to regulatory approval, proposes to acquire three wholly owned subsidiary companies that collectively own a 100% interest in a gold property located in Ecuador.

Under the currently proposed terms of the agreement Monterra has agreed to pay Arak an Exclusivity Fee of CDN $100,000 to ensure that neither Arak nor Monterra will solicit or enter into any other significant transactions or make any other acquisitions until June 30, 2016. The fee is payable on or before January 29, 2016.

Subject to due diligence, conditions precedent and regulatory approvals, the proposed purchase price for the three subsidiary companies payable to Monterra will be paid by the issuance of shares of Arak which will subsequently (on closing) be distributed to Monterra shareholders.

Upon completion of its negotiations with Monterra, the Company will issue a further press release in respect of the Transaction disclosing all material information.

ON BEHALF OF THE BOARD OF DIRECTORS

CARL VON EINSIEDEL, PRESIDENT & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.

United States Advisory

The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), have been or will be offered and sold outside the United States to eligible investors pursuant to Regulation S promulgated under the U.S. Securities Act, and may not be offered, sold, or resold in the United States or to, or for the account of or benefit of, a U.S. Person (as such term is defined in Regulation S under the United States Securities Act) unless the securities are registered under the U.S. Securities Act, or an exemption from the registration requirements of the U.S. Securities Act is available. Hedging transactions involving the securities must not be conducted unless in accordance with the U.S. Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in the state in the United States in which such offer, solicitation or sale would be unlawful.

Contact Information

  • Arak Resources Ltd.
    604.410.2277
    604.410.2275 (FAX)