Kinbauri Provides Clarification on Glen Eagle Investment
OTTAWA, ONTARIO--(Marketwire - May 13, 2009) - Kinbauri Gold Corp.
("Kinbauri") (TSX VENTURE: KNB)(FRANKFURT: 3KG.DE) and Glen Eagle
Resources Inc. ("Glen Eagle") (TSX VENTURE: GER) would like to
clarify the legal structure for funds being advanced to Kinbauri
Espana S.L. ("Espana") and how anticipated profits will be
repatriated to the respective parties. Based on inquiries, we
understand that the press releases issued by both parties may have
lacked clarity as to these issues. The following is an explanation to
clarify the structure of the transaction with Glen Eagle:
The investment by Glen Eagle in Espana is structured in part as share
capital and in part as loan. Similar to Glen Eagle, Kinbauri has also
advanced development funds to Espana in the form of share capital and
loans. With this structure, both Glen Eagle and Kinbauri can
repatriate positive cash flow to Canada from Kinbauri Espana with a
minimum of withholding tax, maximizing monetary benefits to Kinbauri,
Glen Eagle and their shareholders.
All loans are non-recourse, meaning that neither Kinbauri nor Glen
Eagle can make a call on their loans or demand loan payments. The
agreements restrict loan repayments to positive cash flow generated
from Espana's operations; further to be authorized by the Board of
Espana. Funds applied by Kinbauri and Glen Eagle toward loan
repayments should not be taxed in Canada. Cash or kind will only be
distributed to Glen Eagle and Kinbauri in the ratio of their
participating interest, whether it be by dividend or loan repayment;
i.e. 55% Kinbauri: 45% Glen Eagle or 50% Kinbauri: 50% Glen Eagle, or
as the case may be.
About Kinbauri:
Kinbauri is a TSXV - Tier 1 Mineral Exploration Company focused on
the development of precious metal prospects in Spain, Nevada and
Canada. Its immediate focus is to begin operations at its El
Valle/Carles property in Asturias, northwestern Spain by 2010. It has
53,243,051 common shares issued and outstanding.
This press release contains certain forward-looking statements, which
are based on the opinions and estimates of management at the date the
statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected. Kinbauri
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change.
The reader is cautioned not to place undue reliance on
forward-looking statements.
VISIT:
Kinbauri Gold's Hub at http://www.agoracom.com/IR/kinbauri where
investors can post questions and receive answers or review questions
and answers already posted by other investors. Kinbauri Web-Site:
www.kinbauri-gold.com
THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP. THE TSX
VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Contacts:
North America
Darrell Munro, BB.A, LL.B
Manager, Corporate Communications
613-836-0198
dmunro@kinbauri-gold.com
Dr. Vern Rampton, P. Eng.
President
613-836 2594
613-831 2730 (FAX)
vrampton@kinbauri-gold.com / kinbauri@kinbauri-gold.com
Chris Irwin
Secretary
416-361-2515
cirwin@irwinlaw.ca
Europe
INVESTEL
Investor Relations & Telecommunications
Ruediger (Rudy) Hnyk
CEO
ceo@investel.de
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
