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Consolidated Beacon Resources Ltd.: Corporate Update
CALGARY, ALBERTA, Tuesday, 20 th March 2007 – Consolidated Beacon Resources Ltd. (the "Company" or “Beacon”) is pleased to announce the settlement of three outstanding issues, the closure of which will allow the company to move forward with increasing its participation in its core San Joaquin East Slopes Joint Venture project.
First, the Company has received TSX approval for the issue of 1,000,000 bonus warrants “Warrants”) to be issued to Global Maxfin Capital Inc. (“Global”) of Toronto. These Warrants replace (on a one-for-one basis) Incentive Stock Options previously issued to Global as a result of an undertaking made by previous management. These Stock Options have been cancelled. The Warrants are in consideration of ongoing services provided in pursuant to a Fiscal Agency Agreement dated 18 th October 2006. Each Warrant is exercisable for one common share of the company at a price of $0.15 for period of two years, expiring on 14 th February 2008.
Second, the Company has also received TSX approval to issue new debentures (“New Debentures”) in the amount of $600,000 in settlement of previous debentures (the “Old Debentures”) for the same amount. The New Debentures are convertible into Units at a rate of $0.10 per Unit until the maturity date of 23 rd February 2008 (“Maturity”). Each Unit consists of one common share and one warrant exercisable for one additional common share at a price of $0.15 until Maturity. The Old Debentures, accepted by the Exchange on 8 th August 2006, expired on 21 st December 2006. The Company has maintained its interest payment on the Old Debentures to its creditors. The holders of the New Debentures are the same as the holders of the Old Debentures.
Third, the Company has also come to a settlement with the holders of a Debenture (the “Elliott Debenture”) in the amount of $200,000 issued in January 2005 by the former management of Beacon for the purpose of working capital to Elliott Industrial Resources Ltd. (“Elliott”), the company’s then-wholly-owned subsidiary. The Elliott Debenture holders have undertaken to wind up Elliott upon full repayment of the $200,000, thus also eliminating an additional inter-company loan from Elliott to Beacon in the amount of $361,090. On 21 st November 2005 the Elliott Debenture holders took possession of the shares of Elliott as Beacon had defaulted on the terms of the Elliott Debenture, and had not repaid the full amount by the maturity date. After carrying out a forensic audit and taking legal advice, the Company has paid $50,000 and has undertaken to pay the remaining $150,000 by 30 th May 2007 to the Elliott Debenture holders on the understanding that the amount will be used to pay off Elliott’s remaining creditors in full.
In additional, the San Joaquin East Slopes Joint Venture project, of which the Company is an investment participant, continues to make satisfactory technical and land acquisition progress.
Consolidated Beacon’s Board of Directors comprises:
Mr. John G.F. McLeod, P. Eng., Chairman, of Calgary.
Mr. Richard J. Hawes, P. Geol., Secretary, of Calgary.
Mr. Gil Schneider, of Vancouver.
About Consolidated Beacon Resources Ltd.
Consolidated Beacon Resources Ltd. is a Calgary, Alberta based corporation in the business of evaluating and acquiring oil and natural gas properties for exploration and development in Canada and the United States.
For further information about the Company, please contact:
Richard J. Hawes, P.Geol. Gordon Beach
Consolidated Beacon Resources Ltd. I.R. Communicators, Inc
T: 403-221-8392 T: 403-651-2314
E: rjhawes@consolidated-beacon.com E gordbeach@shaw.ca
or visit the Company’s website at: http://www.consolidated-beacon.com
This release may contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by the Corporation on SEDAR (www.sedar.com), specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Corporation undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
The TSX Venture Exchange has not reviewed this release and it does not accept responsibility for its adequacy or accuracy.
