CMP Canadian Rocky Mountain Properties

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN
THE UNITED STATES.


McWatters Mining Inc. ("McWatters") has announced today that it has issued
318,552,382 common shares to an affiliate of International Royalty Corporation
("IRC") for consideration of US$ 160 million.  In addition IRC has indirectly
acquired 140,163,049 common shares of McWatters from CFT Capital Inc. ("CFT")
giving it 100% of the common shares now outstanding.  In addition to these
common shares, McWatters has 560,652,194 Class A Preferred Shares outstanding
created as part of a Plan of Arrangement of McWatters effective June 2, 2008,
which represent a 55% voting interest in McWatters.


The proceeds from the issuance of these common shares have been invested through
Sigma-Lamaque Limited Partnership ("Sigma-Lamaque LP") in a loan to Canadian
Minerals Partnership ("CMP"), a partnership wholly owned by IRC.  The loan has a
five year term, is unsecured and bears interest at the rate of 11% per annum.
After the loan has been outstanding for one year, CMP has the option of
prepaying up to US$25 million of the loan on a cumulative basis by the transfer
of royalty assets to Sigma-Lamaque LP at the fair market value of such assets as
certified by a qualified valuator jointly selected by CMP and Sigma-Lamaque LP.
McWatters currently intends to use any available income to be earned on this
investment to continue to acquire investment assets.


As a part of this transaction CFT, to which were assigned substantially all of
the unsecured creditor claims pursuant to the amended proposal of McWatters to
its creditors approved on May 7, 2008, has forgiven a portion of the creditor
claims such that the resulting amount payable to CFT by McWatters is reduced to
CDN$ 7.3 million.  This amount is payable to CFT only as to approximately 6% of
available cash flow of McWatters, subject to the terms and conditions of the
Subordination and Postponement Agreement entered into as of March 19, 2008
between CFT and McWatters.  As a result of these transactions McWatters
currently anticipates being in a position to meet the dividend and redemption
requirements of the Class A Preferred Shares.


Forward-Looking Statements

This press release contains "forward looking information" (as defined in
applicable Canadian securities legislation) and "forward looking statements" (as
defined in the U.S. Securities Exchange Act of 1934) (forward looking
information and forward looking statements being collectively hereinafter
referred to as "forward looking information") that are based on expectations,
estimates and projections as of the date of this press release. Often, but not
always, such forward looking information can be identified by the use of forward
looking words such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and phrases or
statements that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved. Forward looking information
involves known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements to be materially different
from any future results, performance or achievements expressed or implied by the
forward looking information in this press release. Examples of such forward
looking information in this press release include, but are not limited to,
factors relating to interest and income anticipated to be generated from the
loan to CMP, the possible acquisition of additional income producing assets by
McWatters and the results expected to be achieved therefrom, including any
statements regarding anticipated payments of dividends on the Class A Preferred
Shares of the share capital of McWatters and anticipated payments on account of
their redemption price, which are subject to significant risks and
uncertainties, including (1) the possibility that McWatters may or may not
receive interest payments indirectly through the loan to CMP or acquire
additional income producing assets, and (2) the possibility that McWatters may
not derive sufficient cash flow from any income generating assets in order to be
able to make the anticipated payments of dividends on the Class A Preferred
Shares and/or the anticipated payments on account of their redemption price.
Actual results are likely to differ, and may differ materially, from those
expressed or implied by the forward looking information contained in this press
release. Such forward looking information is based on a number of assumptions
which may prove to be incorrect, including, but not limited to, assumptions in
connection with the acquisition or profitability of any business or otherwise
about the approvals or clearances required to be obtained from regulatory and
other agencies and bodies being successfully obtained, and business and economic
conditions generally. While McWatters anticipates that subsequent events and
developments may cause McWatters' views to change, McWatters will not update
this forward looking information, except as required by law. This forward
looking information should not be relied upon as representing McWatters' views
as of any date subsequent to the date of this press release. McWatters has
attempted to identify important factors that could cause actual actions, events
or results to differ materially from those current expectations described in
forward looking information. However, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended and
that could cause actual actions, events or results to differ materially from
current expectations. There can be no assurance that forward looking information
will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward looking information. These factors
are not intended to represent a complete list of the factors that could affect
McWatters and other transactions contemplated herein.

Canadian Rocky Mountain Properties (TSXV:CMP)
Historical Stock Chart
Von Jun 2024 bis Jul 2024

Canadian Rocky Mountain Properties (TSXV:CMP)
Historical Stock Chart
Von Jul 2023 bis Jul 2024