SOURCE: Strongbow Resources, Inc.
VANCOUVER, BC--(Marketwired - Sep 2, 2014) - Strongbow Resources Inc. (OTCQB: STBR) (the "Company") is pleased to announce that it has entered into a non-binding letter of intent with the Canadian Chamber of Commerce in South China (the "Investor") whereby the parties set out the basic terms by which the Investor would invest up to $75 million into three projects of the Company. The $75 million would be disbursed in three phases for Projects A, B, & C.
Phase 1 would be an investment of $10 million for Project A, which is anticipated to consist of acquiring production, production enhancement, re-entry and infill drilling. Phase 2 would be an investment of $30 million for Project B, which is anticipated to be the acquisition of a larger scale project than Project A. The final phase 3 would be an investment of $35 million to develop the 8 sections (5120 acres) of the Company's current Compeer asset in Alberta. The Company would perform an evaluation after each phase to determine a fair market price for the investment in order to reduce dilution to the current shareholders of the Company.
President and CEO Michael Caetano stated, "It has been a pleasure building a relationship with the Canadian Chamber of Commerce in South China. We are excited to have their financial interest in developing strong opportunities for Strongbow, which we believe may grow our company and shareholder value. We look forward to a great future."
Any investment by the Investor would be subject to suitable due diligence by the Investor and the entry into of definitive agreements. The Company anticipates working with the Investor as it evaluates potential acquisition targets. The Company has not entered into any agreements for the potential acquisitions until its satisfied with the due diligence.
On behalf of Strongbow Resources Inc.
President and Chief Executive Officer
Strongbow Resources Inc.
About Strongbow Resources Inc.
Strongbow Resources Inc. is a publicly listed, junior oil and gas company with oil and gas properties located in Western Canada. Strongbow is engaged in the business of seeking out, evaluating and acquiring working interests in oil and gas projects, domestically and internationally, which it plans to enhance through its management, technical and operational team. Strongbow operates as Big Lake Energy Ltd. in Alberta and as Strongbow Resources Inc. in Saskatchewan. The Company's common shares trade on the OTCQB US Exchange under the symbol STBR.
Forward-Looking Statements: This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"), including statements of any potential investment by the Investor and future acquisition by the Company. All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include satisfactory due diligence by the Investor, general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which the Company has little or no control. Unless required by applicable law, the Company does not intend to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the Company's recent filings with the SEC.