VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 2, 2014) - Boss Power Corp. (TSX VENTURE:BPU) ("Boss Power") is pleased to announce it has closed on the settlement agreement with the Province of British Columbia (the "Province") dated October 19, 2011 (the "Blizzard Settlement"), amended as set forth below. As a result the Province has paid the total amount of $30,356,422.67 (the "Settlement Proceeds") in full and final settlement of Boss Power v. Her Majesty the Queen in Right of British Columbia, BCSC Action No. S087266.
In addition to the originally agreed upon terms of the Blizzard Settlement, the Province received at closing an indemnity from Boss Power and Blizzard Uranium Corp. (a wholly owned subsidiary of Boss Power) respecting the mineral claims beneficially owned by Boss Power, and a separate indemnity from Mr. Anthony Beruschi respecting the mineral claims beneficially owned by Mr. Beruschi (the "B Claims"). Pursuant to the indemnities, the respective mineral claim owners warranted there are no liens, mortgages or charges concerning the mineral claims they own, and agree to indemnify the Province for any costs, expenses and disbursements incurred by the Province in connection with any claims against the Province from any other person claiming an entitlement to compensation in respect of such mineral claims. For additional Information respecting the original terms of the Blizzard Settlement see the Boss Power press release dated October 20, 2011.
The Settlement Proceeds have been paid out pursuant to the binding letter agreement (the "Letter Agreement") announced April 1, 2014, among Boss Power and Morning Star Resources Ltd., Magic Dragon Ventures Ltd. and Anthony Beruschi (collectively, the "Beruschi Parties"), which required the Settlement Proceeds be disbursed as follows: (i) $3,600,000 to Anthony Beruschi; (ii) $2,500,000 to Boss Power for interim funding purposes; and (iii) the balance of the settlement proceeds to be held in trust pending completion of a divisive reorganization by way of plan of arrangement under the Business Corporations Act (British Columbia) (the "Arrangement") as more particularly described in the Boss Power press release dated April 1, 2014. Further, the agreed cost amount of $356,422.67 was paid by the Province directly to Boss Power's legal counsel.
Full details of the settlement of the legal disputes between Boss Power and the Beruschi Parties and the Arrangement (collectively, the "Transaction") will be included in an information circular to be mailed to Boss Power shareholders in accordance with applicable securities laws. The Transaction is expected to close before the end of August, 2014.
Forward-Looking Information: This release contains forward-looking information within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact are forward-looking statements. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Boss Power's forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. Boss Power assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.