SOURCE: Viking Investments Group, Inc.

February 05, 2015 08:30 ET

Viking Investments Group, Inc. Executes Agreement With Cytron Capital Group Inc. Concerning Gravel and Timber Operation in Saskatchewan

NEW YORK, NY--(Marketwired - Feb 5, 2015) - On January 14th, 2015, Viking Investments Group, Inc. ("Viking") (OTCQB: VKIN) announced the execution of a Letter of Intent with Cytron Capital Group Inc. ("Cytron") wherein the parties outlined the essential elements of a joint venture concerning the acquisition, development and/or management of various projects in the Real Estate and Energy sectors (the "LOI"). On February 3rd, 2014 Viking announced the execution of a Share Purchase Agreement with Cytron regarding one of the real estate ventures contemplated in the LOI, and on February 4th, 2014 Viking announced the execution of a Share Purchase Agreement with Cytron regarding the second real estate venture contemplated in the LOI.

Viking is now pleased to report it has entered into an agreement in principle on February 4th, 2015 with Cytron with respect to another venture contemplated in the LOI.

Pursuant to this agreement, Viking has agreed to purchase 50% of the issued and outstanding shares of Cytron Gravel Corporation ("Cytron Gravel"), a wholly-owned subsidiary of Cytron, subject to certain conditions being satisfied, including Cytron Gravel having the exclusive right to remove and sell all of the sand, gravel and other surface and undersurface materials, and all of the saleable timber, from or in respect of a targeted parcel of property in Naicam, Saskatchewan (the "Property"). Cytron Gravel expects to secure the aforementioned rights on or before March 17th, 2015.

On or about January 19th, 2015, C&F Land Resource Consultants Ltd., a firm with over 30 years' experience in soil surveying, land use interpretation, land reclamation, gravel pit monitoring, and consulting major aggregate producers in Western Canada, issued a preliminary assessment of the aggregate potential at the Property (the "C&F Report"). According to the C&F Report, the total potential land area available for aggregate extraction is approximately 3,808 acres, and the total available volume of aggregate at 100% utility and 50% utility is 127,217,375 cubic yards and 63,608,688 cubic yards, respectively. The total estimated value of the aggregate based on a selling price as pit-run unprocessed material at $2.07 per tonne would be CDN$381.9M at 100% utility and CDN$190.9M at 50% utility, according to the C&F Report.

On closing of the transactions contemplated in the subject agreement, Viking has agreed to issue to Cytron 3,500,000 common shares in the capital stock of Viking plus 3,500,000 warrants entitling Cytron to purchase an additional 3,500,000 common shares of Viking at a price equal to $3.50 per share, expiring March 17, 2018.

About Cytron:

Cytron Capital Group Inc. is a North American based investment capital group that provides capital and corporate finance services, primarily focused on real estate, property development, natural resources, including agriculture, and the energy sector.

About Viking:

Viking aims to acquire, invest in and/or provide professional advisory and consulting services to companies undergoing or anticipating periods of rapid growth, significant change or ownership transition. Viking's primary focus is directed toward evaluating and completing investments in North America, mainly in the Oil & Gas and Real Estate sectors, with appropriate diversification and balance between each division. Viking targets under-valued investments with realistic appreciation potential and a defined exit strategy. 

Viking is not an investment company, as defined by the Investment Company Act of 1940.

Safe Harbor Statement
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company's Forms 10-K and 10-Q filed with the SEC.

Contact Information

  • For additional information please contact:

    James A. Doris
    President and C.E.O.
    Viking Investments Group, Inc.
    1330 Avenue of the Americas, Suite 23A
    New York, NY 10019
    Email: jdoris@vikinginvestments.com