VGN / DVR Get $1,110,000Greencastle sub scores big on asset sales. Proceeds to build Greencastle drone sub Deveron UAS Corp. (CSE "DVR").
FOR IMMEDIATE RELEASE
January 9, 2017
GREENCASTLE SUBSIDIARY TO RECEIVE $1,110,000
Greencastle Resources Ltd. (TSX-V: VGN) (“Greencastle” or the “Company”), is pleased to announce that the Company’s subsidiary, Deveron UAS Corp. (CSE “DVR”) has entered into an agreement, whereby, they will receive gross proceeds of $960,000 for the sale of legacy assets not related to Deveron’s rapidly expanding precision ag. drone / data services business. This sale, along with the proceeds from the Nechako disposition (Deveron release of August 17, 2016), brings the expected total proceeds from legacy assets to $1,110,000.
Greencastle owns 9,228,005 common shares of Deveron or approximately 52%.
Commenting on the news, Anthony Roodenburg, Greencastle CEO said: “The team at Deveron has done a tremendous job realizing value on legacy assets. Deveron is well financed and poised for revenue growth in 2017. I would strongly urge investors to take a serious look at Deveron. The use of drones to collect data for commercial farming is a super-hot sector. Deveron is emerging as a market leader in Canada and they have also begun commercial flights in the United States. With Deveron’s transformation complete, Greencastle management focus will shift to unlocking value in our Nevada gold assets and generating new opportunities.”
As of Sept. 30, 2016, Greencastle reported liquid assets of $3,908,452 or approximately $0.09 / share. This figure does not include the 9,228,005 common shares of Deveron or the Company’s three gold properties in Nevada.
The proceeds from the Deveron legacy assets leaves both companies in excellent financial condition.
In a press release dated January 6, 2017, Deveron CEO, David MacMillan had this to say about the sale and Deveron’s progress: “Deveron continues to see sizable growth opportunities in its drone data business as we head into 2017. Monetizing legacy assets provides ample capital for the growth of our network of drones as we target expansion into western Canada and select opportunities in the United States.”
Deveron has tendered 100% of its shareholdings in Boreal Agrominerals Inc. (“Boreal”) to an offer. On closing, Deveron received an initial payment of $90,000. In total, Deveron is to receive cash considerations of approximately $960,000 to be paid in three tranches: $90,000 on December 30, 2016 (“Effective Date”) Received; $360,000 on or before the 6-month anniversary of the Effective Date; $510,000 on or before the one-year anniversary of the Effective Date, which could be extended to the second anniversary of the Effective Date.