BrazAlta Hopes to Purchase Canacol Energy
BrazAlta Resources Corp. announced that it has entered into an arm's length binding letter of intent for the acquisition of all of the issued and outstanding common shares and warrants of Canacol Energy Inc., a private Alberta company operating in South America, with agreements to purchase production and exploration assets in Colombia and on-shore Guyana. The Transaction will be satisfied by the issuance of 60,000,000 preferred shares of BrazAlta.
BrazAlta, concurrent with the Transaction, intends to spin out BCH Ltd., the Corporation's subsidiary oilfield service company, to the BrazAlta common shareholders of record on a record date to be established (the Reorganization) on the basis of one BCH share for every ten shares of BrazAlta held. The Preferred Shares issued to Canacol shareholders will be convertible into BrazAlta common shares following completion of the Reorganization. The holders of the Preferred Shares will NOT be entitled to receive any of the BCH shares pursuant to the Reorganization. In conjunction with the Reorganization, BrazAlta's management is considering a number of liquidity options for BCH including a corporate sale or listing of BCH as a publicly traded entity.
The combined company will represent a large regional presence in South America with an extensive portfolio of production, appraisal and exploration assets in the focus region. The attributes of combining BrazAlta and Canacol include:
As part of the Reorganization it is expected that BrazAlta will continue to have its listing on the TSX Venture Exchange under the name of Canacol Energy Inc.
- BrazAlta Changes Name, Elects New Board of Directors (Feb 13)
- BrazAlta Unveils Capital Work Program for South American Assets (Jan 27)
- New VP of Exploration Joins BrazAlta (Jan 23)