Mega Profit Worldwide Limited

June 15, 2016 09:16 ET

Mega Profit Acquires Shares of Reservoir Minerals Inc.

SHANDONG, CHINA--(Marketwired - June 15, 2016) - Mega Profit Worldwide Limited ("Mega Profit"), an affiliate of Shandong Xiangguang Group Co., Ltd. ("XGC"), acquired ownership of 2,178,800 common shares of Reservoir Minerals Inc. ("Reservoir") (TSX VENTURE:RMC) on June 14, 2016 through the alternative trading facilities of Chi-X Canada representing approximately 3.5% of the 60,905,093 issued and outstanding common shares of Reservoir (the "Common Shares"). The securities were acquired at a weighted average price per common share of Cdn$8.76.

Before the transaction, XGC, Mega Profit and other affiliates owned and controlled, directly and indirectly, a total of 1,784,961 Common Shares representing approximately 2.93%. After giving effect to the acquisition referred to above, they now own and control, directly and indirectly, a total of 3,963,761 Common Shares representing approximately 6.5% of the issued and outstanding shares of Reservoir, an increase of approximately 3.57%. By way of voting agreements executed with the sellers, XGC has full voting rights over the acquired Common Shares for the purpose of the proposed arrangement, described below, between Reservoir and Nevsun Resources Ltd. ("Nevsun").

XGC and Jing Bao (Asia) Limited ("Jing Bao"), an investment company specializing in the commodity and natural resources arena, both have expressed publicly an intent to vote against the proposed arrangement (the "Arrangement") between Reservoir and Nevsun pursuant to which Nevsun proposes to acquire all of the issued and outstanding Common Shares in exchange for Nevsun common shares on the basis of two Nevsun common shares and $0.001 in cash for each Common Share. Jing Bao owns and controls, directly and indirectly, 4,750,000 Common Shares or approximately 7.8% of the issued and outstanding Common Shares. Oriental Bright Consulting Co. Ltd. ("Oriental"), a joint actor with XGC for the purpose of the transaction, owns and controls, directly and indirectly, 260,870 Common Shares or 0.43% of the issued and outstanding Common Shares. XGC, Oriental and Jing Bao collectively own and control, directly and indirectly, 8,974,631 Common Shares or approximately 14.73% of the issued and outstanding Common Shares. XGC, Oriental and/or Jing Bao have no agreement, commitment or understanding to acquire securities of Reservoir, nor any agreement, commitment or understanding requiring any of them to vote in a certain manner in respect of the securities of Reservoir. Each of XGC, Oriental and Jing Bao may change their vote in respect of the Arrangement or any other matter in its sole and absolute discretion.

As of the date hereof, XGC has acquired additional Common Shares for investment purposes and to strengthen its strategic position in Reservoir. XGC, Oriental and Jing Bao have all expressed an intent to vote against the proposed Arrangement. XGC, Oriental and/or Jing Bao may solicit proxies from other shareholders against the Arrangement. XGC, Oriental and Jing Bao may also provide alternative financing to Reservoir. XGC, Oriental and/or Jing Bao may acquire additional securities from time to time for investment and/or strategic purposes. XGC, Oriental and/or Jing Bao may cooperate in the future to effect changes to the composition of the board of directors of Reservoir, although they have no agreement, commitment or understanding to do so at this time.

Reservoir's head office address is 501 - 543 Granville Street, Vancouver, British Columbia, Canada, V6C1XB.

XGC is a company incorporated under the laws of China whose principal business consists of copper smelting, fabricating and mining activities. Mega Profit is an investment holding company incorporated in Hong Kong.

Mega Profit will file a report under National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues under Reservoir's profile on SEDAR (www.sedar.com) containing additional information respecting the foregoing matters.

Contact Information

  • To obtain a copy of the report, please contact:
    Bob Yao
    1 Xiangguang Rd., Shifo Town, Yanggu County
    Liaocheng City, Shandong Province, China
    +86 21 20369117