Piper Resources Ltd.

August 06, 2008 16:42 ET

Piper Resources Ltd. Announces Extension to CCAA Protection

CALGARY, ALBERTA--(Marketwire - Aug. 6, 2008) - As previously stated in the press release dated February 17, 2008, Piper Resources Ltd. ("Piper" or the "Company") was granted protection under the Companies Creditors' Arrangement Act (Canada) ("CCAA") on that date by an Initial Order from the Alberta Court of Queen's Bench (the "Court") which stayed its creditors from enforcing their rights until March 17, 2008 and such protection was extended by subsequent court orders on March 17, 2008, April 28, 2008, June 12, 2008, July 15, 2008 and July 22, 2008. The July 22, 2008 court order extended the protection to August 5, 2008.

On August 5, 2008, the Court extended Piper's stay of protection under CCAA until August 18, 2008. The extension order provides the Company the necessary time to attempt to finance the activities under a Farm In Agreement as previously disclosed in a news release dated July 23, 2008, however there can be no assurance that the Company will obtain the necessary financing by August 10, 2008 (being the termination date of the Farm In Agreement absent consent and amendment by the farmor). If there is no financing available on acceptable terms for the Farm In Agreement on or before August 10, 2008, the Company will have no assets and will not be able to carry on operations past August 18, 2008.

Additionally the Court also approved the release of the Company's assets, excluding the Farm In Agreement, currently under the control of the Receiver, Deloitte & Touche LLP, to the Company's secured creditor, Matco Capital Ltd. effective August 8, 2008.

The materials filed to date in the CCAA proceedings are available on the Receiver's website of www.deloitte.ca under the Insolvency and Restructuring link (the "Website") or by contacting the Receiver directly at (403) 298-5999 or by email at piper@deloitte.ca.

Certain information regarding the Company contained herein may constitute forward-looking statements. These statements relate to future events or future performance of the Company. When used in this release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", believe", "estimate", "predict", "seek", "propose", "expect", "potential", "continue", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current view with respect to certain events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance, or achievements to vary from those described in this presentation. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this release as intended, planned, anticipated, beliieved, estimated, or expected.

Contact Information

  • Piper Resources Ltd.
    Greg Cave
    President
    (403) 650-9229