Long Harbour Capital Corp.

March 07, 2008 15:45 ET

Long Harbour Announces Qualifying Transaction

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2008) - Long Harbour Capital Corporation (TSX VENTURE:LHC.P) reports that it has entered into an arm's length property option agreement dated for reference March 5, 2008 with Aries Resource Corp. (the "Option Agreement") whereby Long Harbour has been granted the option to acquire a 100% interest, subject to a 2% net smelter returns interest, in the HD Property located in the Liard Mining Division (the "Option"). Subject to receipt of the acceptance of the TSX Venture Exchange (the "Exchange"), the acquisition of the Option will constitute Long Harbour's qualifying transaction with Long Harbour being classified as a Tier 2 Mining Issuer. Aries Resource Corp., a BC company listed on the Exchange under the trading symbol AES.V, has advised Long Harbour that Doctors Investment Group Ltd. is its only control person. The transaction will not constitute a Non Arm's Length Qualifying Transaction.

The HD Property consists of a single claim covering 425.613 hectares, situated within the Muskwa Mountain Range, approximately 150 kilometers west-southwest of Fort Nelson, BC. The HD Property has been the subject of exploration activities conducted since 1970. Over the past 30 months, Aries Resource Corp. expended $3.5 million in exploration activities relating to the HD Property. A NI 43-101 technical report will be filed on SEDAR in connection with this transaction.

In order to exercise the Option, Long Harbour is required to pay $10,000, issue 200,000 common shares and incur exploration expenditures totaling $1 million over three years, including $200,000 of expenditures over the initial 18 months. Long Harbour has sufficient working capital to cover the cash portion of the consideration payable to exercise the Option and the initial property expenditures, and therefore is not currently planning to conduct a concurrent financing. The Option Agreement does not require Long Harbour to make a deposit, loan or advance of funds.

At this time, Long Harbour is not planning any change in its directors and officers. A sponsor has not been retained, and the company plans to seek an exemption from sponsorship pursuant to section 3.4 of TSXV Policy 2.2.

Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable pursuant to Exchange Requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.


Howard Louie, President and CEO

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Long Harbour Capital Corp.
    Howard Louie
    President and CEO
    (604) 602-9222
    (604) 648-2201 (FAX)