LAK / BECCALGARY, July 28, 2011 /CNW/ – LAKOTA RESOURCES INC. (th?"Company" ?r "Lakota") is pleased to announce the closing ?f a sharesf?r debt transaction, wh??h forms part ?f its recapitalization ?l?n (th?"Recapitalization") that w?ll result in its debt burden beingsignificantly reduced and is expected to allow Lakota to resume itsexploration activity.
Th? Recapitalization process involves three principle stages (two ?f wh??h h??? already been implemented).
- Private Placement. as detailed in the press release ?f Lakota dated July 15, 2011, the Company h?? completed a private placement ?f 172,710,000 ?f its common shares to n?w management and ?th?r investors ?t a price ?f
.01 per common share f?r proceeds ?f $1,727,100 (th? "Private Placement").
- Shares f?r Debt Settlement. all ?f the debt owed by Lakota to BEC International Corporation ("BEC") and 49 North Resources Inc. ("49 North"), two ?f its most significant creditors, in the aggregate amount ?f $1,300,000, h?? been settled in exchange f?r the issuance ?f ?n aggregate ?f 130,000,000 common shares in Lakota. as a result ?f these shares f?r debt transactions, BEC and 49 North h??? direction and control over approximately 17.7% and 18.1%, respectively, ?f the current issued and outstanding shares ?f the Company. in addition, approximately (i) $200,000 in unpaid compensation owed to former members ?f management and a consultant; and (ii) $132,070 owed to ?n arm's length party arising in respect to a finder's fee and ??rt??n professional services rendered in connection with the Private Placement, h??? both been settled in exchange f?r the issuance ?f ?n aggregate ?f 33,207,219 common shares in Lakota. the conversion ?f all such debt w?? completed ?n the basis ?f one share f?r each
.01 ?f debt. the shares issued in respect to each ?f the shares f?r debt transactions ?r? subject to a 4 month hold period.
- Consolidation. the Corporation intends to seek approval ?f ?n 18 to 1 rollback ?f the outstanding Lakota shares (th? "Consolidation") ?t the annual and special meeting ?f shareholders scheduled f?r August 31, 2011 (th? "Meeting").
It is anticipated that following closing ?f theshares f?r debt transactions noted above, Lakota w?ll h??? sufficientfinancial resources to b?g?n actively implementing the work program ?nits Tanzanian properties as contemplated by its geological report, acopy ?f wh??h is available ?t www.sedar.com.
Inorder to complete step (3) to the Recapitalization, the Company h?? seta shareholder meeting scheduled f?r August 31, 2011, ?t wh??h ?t w?ll??k shareholders to approve, among ?th?r things; (i) the Consolidation;(ii) the election ?f directors; and (iii) the re-naming ?f the Companyto "Valiant Gold Corporation."
President and Chief Executive Officer ?f Lakota, David Scott states:
"W?know that ?t h?? been a long hard road f?r shareholders to reach th??point and w? look forward to a n?w and promising future f?r the Company.W? anticipate that initial work programs w?ll commence shortly and thatwith the resumption ?f work the Company w?ll be ?bl? to realize valuefrom its portfolio ?f assets in Tanzania. "