Procon Mining and Tunnelling Ltd.

June 01, 2009 18:32 ET

Procon Completes Investment in Cross Lake

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2009) - Procon Mining and Tunnelling Ltd. ("Procon") of Suite 108 - 4664 Lougheed Highway, Burnaby, British Columbia, V5C 5T5 reports its recent acquisition of securities in 0373849 B.C. Ltd. (formerly Cross Lake Minerals Ltd.) (the "Company") at a purchase price of $1,650,000.

Pursuant to the amended and restated plan of compromise and arrangement (the "Plan") filed by the Company on May 21, 2009 pursuant to the Companies' Creditors Arrangement Act ("CCAA") and the British Columbia Business Corporations Act, the investment agreement between Procon and the Company dated April 3, 2009 as amended on May 7, 2009 and upon conversion of a non-interest bearing loan of $1,650,000 to the Company (the "Loan"), on June 1, 2009 Procon acquired from the Company ownership of 56,885,026 common shares and 695,135,018,831 non-voting shares of the Company. Each common share and non-voting share was issued at a price of $0.0000023734453621304 per share. Procon acquired the common shares and non-voting shares of the Company for investment purposes.

As a result of the acquisition of the shares, Procon now owns 56,885,026 common shares and 695,135,018,831 non-voting shares of the Company representing approximately 45% of the (voting) common shares and 100% of the non-voting shares of the Company, providing Procon with the ownership of 99.99% of the total equity of the Company.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.

Contact Information

  • Procon Mining and Tunnelling Ltd.
    Edward Yurkowski
    President
    (604) 291-8292
    (604) 291-8082 (FAX)
    www.procongroup.net