Palo Duro Energy Inc.

Palo Duro Energy Inc.

October 07, 2011 16:16 ET

Palo Duro Updates Acquisition of Mining Properties in Guinea, Africa

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2011) - Palo Duro Energy Inc. ("Palo Duro" or the "Company") (TSX VENTURE:PDE) continues to make progress on the acquisition originally announced June 29, 2011. The Company continues its due diligence on the properties and documents.

The closing of the Acquisition is subject to a number of conditions, including: (a) entering into a formal binding agreement; (b) completion of due diligence; (c) the approval of the TSX Venture Exchange ("Exchange"); (d) the approval of the shareholders of Palo Duro ("Shareholders"); (e) completion of a financing to raise not less than $3,000,000 by Palo Duro; and (f) closing occurring not later than December 31, 2011.

Trading of Palo Duro's shares will remain halted pending receipt and review by the Exchange of acceptable documentation regarding the Company following completion of the Transaction. The proposed Transaction has not been approved by the Exchange and remains subject to Exchange acceptance.

Palo Duro Energy Inc.

J. Stephen Barley, President & CEO.

Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws, including information regarding the share consolidation. Forward-looking information is based on plans and estimates of management at the date the information is provided and certain factors and assumptions of management. Forward looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risks related to international operations and doing business in foreign jurisdictions, risks associated with the oil and gas industry and exploratory and development activities generally (e.g., operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, risks associated with equipment procurement and equipment failure), the risk of commodity price and foreign exchange rate fluctuations, risks related to future royalty rate changes, and risks and uncertainties associated with securing and maintaining necessary regulatory approvals.

Shares Outstanding: 32,218,347

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Palo Duro Energy Inc.
    Investor Relations
    1-604-639-4670 (FAX)