Attwell Capital Inc.

September 14, 2010 15:46 ET

Attwell Granted Option to Acquire 100% of the SW Property, British Columbia, and Announces Consolidation, Name Change and Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 14, 2010) - Attwell Capital Inc. ("Attwell" or the "Company") (TSX VENTURE:AT.H) wishes to announce that, as disclosed in its September 13, 2010 news release 0880650 B.C. Ltd., a private Canadian company (the "Offeror") is proceeding with the completion of its take-over of Attwell, having acquired 11,456,505 common shares of the Company in its July 9, 2010 take-over bid, representing approximately 64.06% of the outstanding shares of Attwell. Accordingly, effective today, the directors and officers of Attwell have resigned and have been replaced with the following nominees/appointees of the Offeror:

Gunther Roehlig   -   Director, Chief Executive Officer
Rob McMorran   -   Director
Trevor Kearnes   -   Director
Andrew Williams   -   Chief Financial Officer
James Harris   -   Corporate Secretary

Option Agreement

The Company also announces that it has entered into an option agreement dated September 14, 2010 with Qualitas Holdings Corp. ("Qualitas") to acquire a 100% interest in five mineral tenures comprising 2,098 hectares in the Alberni Mining Division of British Columbia (the "SW Property"). To exercise the option, the Company is required to pay Qualitas $500,000 over a period of three years (of which $15,000 has been paid on signing and $15,000 is payable on receipt of regulatory approval), issue 1,000,000 shares to Qualitas over a period of three years, and incur at least $1,000,000 in expenditures on the SW Property over a period of three years, including a minimum of $200,000 within the first year. Qualitas will retain a 2.0% net smelter returns royalty, 1.0% of which may be purchased by the Company for $1,000,000. Additionally, the Company has agreed to issue an additional 500,000 shares to Qualitas if the Company files a feasibility study on SEDAR in respect of the SW Property.

Qualitas is a private company incorporated in British Columbia, of which the controlling interest is held by Jim Rankin, a resident of British Columbia.

The SW Property

The SW property lies in an area of high geological potential within the newly discovered Plateau Gold-Copper Belt of Central British Columbia. The property is largely underlain by andesitic volcanics and volcaniclastics of the Cretaceous Spences Bridge Group, which was the site of several epithermal precious metals discoveries in the early to mid 2000's. The road accessible property is situated 94 kilometres northwest of Clinton or 95 kilometres southwest of Williams Lake, British Columbia and consists of 5 claims totaling 2097 hectares.

Low sulphidation type mineralization was first discovered on the SW Property in 1992. Appleton Exploration acquired the SW Property in 2006 and proceeded to do reconnaissance type exploration in selected areas of the property in 2006 and 2007. Appleton continued exploration the following year with soil geochemical grids on the Hungry Creek grid, and prospecting in the Hungry Creek area. The 2007/2008 exploration program confirmed the presence of low sulphidation type mineralization and located additional quartz veins in the area of the initial discovery. Soil geochemistry completed on the Hamm Grid located a series of north-northeast trending gold anomalies. These anomalies are most abundant in the northwest corner of the grid where quartz veining has been observed in outcrop. 

Stephen P. Butrenchuk, P.Geol., is a qualified person by the standards of National Instrument 43-101 and is responsible for the scientific and technical information in this news release.

Consolidation, Name Change and Private Placement

The Company also announces that it intends to seek approval for a consolidation of its common shares on a 1 (new) for 2.4 (old) shares basis and a consequent change of name of the Company. Post-consolidation, the Company will have approximately 7,452,040 shares issued and outstanding. These transactions remain subject to regulatory approval.

The Company also announces a private placement of up to 30,000,000 units at a price of $0.05 per unit, each unit consisting of one post-consolidation share of the Company and one warrant to buy one additional post-consolidation share of the Company for $0.10. Proceeds of the private placement will be used to pay for an option payment and a work program in respect of the SW Property, and to provide the Company with working capital. Finder's fee(s) will be paid pursuant to TSX policies and regulations. The Private Placement is subject to regulatory approval.



Gunther Roehlig, 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.

Contact Information

  • Attwell Capital Inc.
    Gunther Roehlig