General Properties Ltd.

General Properties Ltd.

August 03, 2006 18:41 ET

General Properties Revises Letter of Intent to Acquire Mining Properties

CALGARY, ALBERTA--(CCNMatthews - Aug. 3, 2006) - General Properties Ltd. (TSX VENTURE:GPL) ("General Properties" or the "Corporation") announced today that it has entered into a revised letter of intent (the "Letter of Intent") dated August 2, 2006 and replacing the letter of intent dated February 14, 2006 with CaNev Resources Corporation ("CaNev") for the acquisition (the "Acquisition") of 100% of the issued and outstanding shares of Clear Hills Iron Inc. ("Clear Hills") and Peace River Energy Ltd. ("Peace River") (Peace River and Clear Hills are collectively referred to as the "Companies"). The Corporation is a real estate development company and intends for the proposed acquisition of the Companies to be a change of business transaction, reverse take-over and result in the Corporation being classified on the TSX Venture Exchange (the "Exchange") as a mining company. Please refer to the news release issued on March 2, 2006 for more information on the proposed Acquisition.

Pursuant to the Letter of Intent, the Acquisition will now have the holders of shares of the Companies exchange their shares for total consideration of $1,800,000, comprised of 20,740,741 common shares in the share capital of the Corporation at a deemed price of $0.067 per share and $400,000 cash. A total deposit of $150,000 has also been agreed to. In addition, the Acquisition is now considered to be an arms-length transaction as Robert Knight no longer owns shares in CaNev.

The Corporation now has an NI 43-101 report and this report will be summarized in a later news release. The Acquisition continues to be subject to the approval of the shareholders and board of directors of each of the Corporation and CaNev and is subject to necessary regulatory approvals.

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

Contact Information

  • General Properties Ltd.
    Robert B. Knight
    President and Director
    (403) 804-5200