Blue Horizon Industries Inc.

September 19, 2011 08:37 ET

Blue Horizon Announces $700,000 Asset Acquisition by Blue Horizon Energy Inc.

CALGARY, ALBERTA--(Marketwire - Sept. 19, 2011) - Blue Horizon Industries Inc. ("Blue Horizon" or the "Corporation) (CNSX:BH) announces that its wholly-owned subsidiary, Blue Horizon Energy Inc. ("BHE"), has entered into a purchase agreement with an arm's length private oil and gas company to purchase a 100% interest in 4,160 acres of non-producing petroleum and natural gas rights located in the Haro, Alberta and Waskada, Manitoba areas. The purchase price is $700,000 payable by the issuance by the Corporation of units of the Corporation at a deemed price to be determined equal to the five day average closing price of the common shares of the Corporation on the CNSX prior to the issuance of such units. Closing of the acquisition is scheduled to occur on October 13, 2011. Each unit will consist of one common share of the Corporation and one-half of one common share purchase warrant, with each whole warrant entitling the holder to purchase an additional common share of the Corporation at an exercise price of $0.60 per share for a period of one year from the date of issuance. If, at any time after the expiry of the 4 month hold period, the closing price of the common shares on the CNSX is at least $1.00 for a period of 5 consecutive trading days, the Corporation may, at its option, accelerate the expiry date of the warrants by giving written notice thereof to the holder, and, in such case, the warrants will expire on the date which is the earlier of: (i) the 30th day after the date on which such written notice is given by the Corporation; and (ii) the original expiry date. In connection with the purchase, BHE has also agreed to grant the vendor a 3% gross overriding royalty in perpetuity on production from the assets as well as a 2% gross overriding royalty on any additional lands acquired within two miles of the assets to be acquired. The completion of the proposed purchase is subject to a number of conditions including, receipt of approval of the shareholders of the vendor, receipt of all required regulatory approvals, and completion of due diligence investigations by BHE. Shareholders of the vendor (holding approximately 81 percent of the issued and outstanding shares of the vendor) have agreed to vote their shares in favour of the sale of the assets to BHE and will be entering into support agreements with BHE.

Mr. Clint Melnechenko, Vice President of Operations for BHE, states "We are excited about moving forward with closing this acquisition as it will diversify and increase our land holdings by 4,160 acres into Manitoba and Northern Alberta. Furthermore, both parcels situate Blue Horizon among a number of major operators already successfully producing and drilling in the Waskada Manitoba's Spearfish Formation and the Haro Field's Pekisko Formation in Northern Alberta."

About Blue Horizon

Blue Horizon is a diversified industrial company with its shares listed to trade on the Canadian National Stock Exchange (CNSX) under the symbol BH. The Corporation has the following four-fold strategic focus: i) through Blue Horizon Contracting, a wholly-owned division of Blue Horizon Energy Inc., a wholly owned subsidiary of the Corporation, the negotiation and execution of dismantling contracts of existing industrial plants and related facilities; ii) through its other wholly owned subsidiary of Blue Horizon Energy Inc., the exploration for oil and gas in Western Canada; iii) through its 74% owned subsidiary, Blue Horizon Mining Inc., the advancement of two early stage mining projects, one at Vermillion Forks B.C. and the other at Salmo (Kodi) B.C.; and iv) through its wholly owned subsidiary, Blue Horizon Bio-Diesel Inc., the construction of a pilot bio-diesel refinery that validates a technology that is in the process of being licensed to the Corporation's subsidiary.

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Neither the Canadian National Stock Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian National Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Blue Horizon Industries Inc.
    Donald Allan
    President and C.E.O.
    (403) 340-0864