Phoenix Gold target Blue Creek names Baer as director
2016-09-26 15:31 ET - News Release
Mr. Andrew Lee reports
PHOENIX GOLD RESOURCES ANNOUNCES ROGER BAER AS A NEW DIRECTOR OF BLUE CREEK FOREST PRODUCTS LTD.
On Aug. 22, 2016, and Dec. 8, 2015, Phoenix Gold Resources Corp. announced its transaction with Blue Creek Forest Products Ltd. and its major shareholder, Four Rivers Resources Inc. (FRRI). Further to these announcements, Roger Baer, CPA, CMA, is joining Blue Creek as a new director, who will be a director of the resulting issuer following completion of the transaction.
Blue Creek's chief executive officer, Andrew Lee, stated: "Roger brings us a wealth of North American mining experience, with a vast network of mining executives, including those at Newmont, as well as a knowledge of the very Newmont projects adjacent to Phoenix's mineral properties in Nevada. We welcome Roger and look forward to his assistance in seeking to maximize the value of the company's existing mineral properties following the [reverse takeover] as we continue to grow revenues in Blue Creek's expanding forestry business."
Roger Baer, CPA, CMA, non-executive director
Mr. Baer recently resigned to pursue other business interests such as Blue Creek, from Alacer Gold Corp. as senior manager of finance and reporting (September, 2014, to September, 2016) in Englewood, Colo. Alacer Gold is a mid-sized Canadian gold mining company with operations and projects in Turkey having revenues of over $240-million in 2015. Previously, Mr. Baer worked as an accounting consultant for Experis Finance in Denver, Colo., on a contract assignment with Newmont Mining Corp. and others (2013 to August, 2014). Prior to then, he was the corporate controller and senior director, operations accounting, for Thompson Creek Metals Company Inc. in Littleton, Colo. (2008 to 2013). Thompson Creek is a North American mining company operating two large molybdenum mines, a newly constructed copper-gold mine and a metals roasting facility and having revenues of $400-million to $1-billion during his tenure there. Earlier, he was the chief financial officer and managing director, Canadian operations, of West Hawk Development Corp., a resource exploration and development company (2007 to 2008). Before then, he was director, corporate accounting of Newmont Mining, one of the world's largest mining companies, which currently operates the Phoenix open-pit gold mine adjacent to the company's mineral properties near the town of Battle Mountain, Nev. Mr. Baer has over 30 years of financial management experience in large and mid-sized mining companies and currently resides in Castle Rock, Colo. It is anticipated that Mr. Baer will be a member of the audit committee of the resulting issuer.
As announced by the company on Dec. 8, 2015, and again on Aug. 22, 2016, the company entered into a letter agreement with Blue Creek and its major shareholder, FRRI, the letter agreement, which contemplates that the transaction will result in a reverse takeover and change of business of the company by Blue Creek.
As required under the policies of the exchange, the transaction will be subject to approval of the shareholders of the company and approval of the exchange.
The letter agreement will be followed by the negotiation of a definitive agreement setting forth the detailed terms of the transaction and containing the terms and conditions set out in the letter agreement and such other terms and conditions as are customary for transactions of the nature and magnitude contemplated in the letter agreement.
About Blue Creek
Blue Creek is a private corporation existing under the laws of British Columbia and carries on business in British Columbia. Blue Creek is majority owned and controlled by FRRI, which is also a private corporation existing under the laws of British Columbia carrying on business in British Columbia. Blue Creek is engaged in the forest products manufacturing business in British Columbia, with scalable low-volume sawmill operations for niche high-margin products destined for the undersupplied, growing markets. In February, 2016, Blue Creek acquired the land and equipment to commence sawmill operations in the vicinity of Barriere, B.C., where it has commenced operations. Blue Creek was incorporated on Sept. 30, 2015, for the purpose of acquiring land and equipment to commence sawmill operations and carry on its niche sawmill business. Blue Creek has no significant financial information to disclose at this time, but such information will be disclosed in summary format in a subsequent news release as well as in much greater detail in other disclosure. Therefore, additional information about Blue Creek and the proposed transaction will be provided in separate subsequent news releases, as well as in disclosure that will be prepared pursuant to the policies of the exchange and in accordance with applicable securities laws in connection with the transaction.
General
On closing of the transaction, the resulting issuer will be listed as a Tier 2 industrial issuer on the exchange. In accordance with exchange policies, the company's common shares have been halted from trading and will remain so until the documentation required by the exchange for the transaction can be provided to the exchange. The company's common shares may remain halted until completion of the transaction. The completion of the transaction is subject to the approval of the exchange.
We seek Safe Harbor.
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