Veteran Resources Inc.

Veteran Resources Inc.

August 02, 2005 19:17 ET

Veteran Announces Extension on Sale of Ontario Properties

CALGARY, ALBERTA--(CCNMatthews - Aug. 2, 2005) - Veteran Resources Inc. (TSX:VTI) announces that, further to its press release of June 28, 2005 relating to the sale of its Ontario properties for $4.3 million, the Company, at the request of the purchaser, has agreed to an extension until December 1, 2005. In return for the extension, the purchaser has paid a $200,000 non-refundable deposit, in addition to the initial $250,000 non-refundable deposit, with the balance of the purchase price due at closing. Closing is now expected to occur on December 1, 2005 with the effective date being the closing date. As such, all production and cash flow will remain to the benefit of Veteran up to the closing date. In addition, Veteran will receive a warrant entitling it to acquire common shares of the purchaser in an amount equal to 10 percent of common shares sold by the purchaser pursuant to a separate financing exercisable for two years at an exercise price equal to the financing price.

Contact Information

  • Veteran Resources Inc.
    Philip J. Loudon
    President and Chief Executive Officer
    (403) 699-8629
    Veteran Resources Inc.
    J. Peter Henry
    Vice President and Chief Financial Officer
    (403) 699-8632