KING OF THE NORTH CORP; PROPOSED ACQUISITION TERMINATED
St-Georges Eco-Mining Corp. has terminated the letter agreement with BWA Group PLC to acquire 100 per cent of King of the North Corp., as outlined in the corporation's news releases dated Aug. 21, 2020, and Nov. 16, 2020.
St-Georges continued to work through the necessary due diligence and closing procedures to complete the acquisition. However despite significant efforts to negotiate debt settlement agreements on behalf of BWA with their creditors, relating to the conditions precedent per the Agreement, it is St-Georges' position that the counter party was unwilling to close on the agreed upon contractual terms and therefore it was in the best interests of shareholders to terminate the arrangement.
St-Georges has commenced the process of consulting with its legal advisors to seek full reimbursement and compensation of its expenses related to the Agreement, and outstanding debts of BWA and KOTN, as well as, to review potential actions on behalf of its shareholders, and as a shareholder and debtholder of BWA.
Vilhjalmur Thor Vilhjalmsson, president and chief executive officer, stated, "Although St-Georges is disappointed that the acquisition did not close in accordance with its terms, and that it could not salvage KOTN from BWA's failure to properly finance its development and maintain its assets, St-Georges will continue to pursue strategic acquisitions and is committed to its current assets, with a focus on developing assets in Quebec, Iceland and the metallurgical R&D work."
The company holds 60,000,000 shares representing 19.65% of the outstanding BWA share capital and 2.15 million pounds sterling of convertible loan notes in BWA.