Petrostar Signs LOI to Acquire LOMAC Canada Ltd. Nanton, AB / ACCESSWIRE / April 30, 2014 / Petrostar Petroleum Corporation ("Petrostar" or "the Company") is pleased to announce that it has signed a Letter of Intent to acquire 100% of the shares of LOMAC Canada Ltd. In consideration for 5,000,000 class A voting common shares of Petrostar and one Canadian Dollar.
Over the next month Petrostar and LOMAC representatives will be working diligently towards the execution of a formal definitive agreement. The transaction will be subject to exchange and regulatory approval.
Petrostar Petroleum's CEO R. Mackenzie Loree Stated: "The purchase of LOMAC Canada Ltd. is a strategic alternative to the formerly proposed development of Farrow, Alberta. The purpose of Farrow was to develop a tank farm and other cash flowing energy assets that would aid the company's transition into its processing and refining segments.
LOMAC Canada provides integrated support in feedstock and petroleum off take marketing and strategic infrastructure. The company's primary infrastructure is a tank farm/tank terminal facility located in the M.D. of Foothills. The tank farm is equipped to terminalling fuel and is equipped to store feed stock for the companies R&D facility. The remainder of the property is equipped with an ASTM quality control testing laboratory and offices.
The transaction is Non-Arm's Length and we are anticipating it to be subject to shareholder approval. In the meantime we will be taking positive steps toward further business development and the completion of subject permitting."