TSX.V: GBN |
SASKATOON, April 15, 2016 /CNW/ - Golden Band Resources
Inc. ("Golden Band" or the "Company") (TSXV: GBN) announces that it
has commenced proceedings to restructure its business and financial
affairs by filing a Notice of Intention To Make a Proposal to its
Creditors (the "NOI") under section 50.4 of the
Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3 (the
"BIA").
Golden Band has engaged The Bowra
Group Inc. ("Bowra") as Proposal Trustee to assist it in
developing and presenting its proposal to creditors. The law firm
of MacPherson Leslie & Tyerman
LLP ("MLT") has been engaged as restructuring counsel to
Golden Band. Concurrent with the NOI
filing, Mr. Beukman (CFO) and Messrs. Coombes and Attaway
(directors) have resigned.
Information relating to the filing and process can be found at
www.bowragroup.com. Further information regarding the restructuring
of Golden Band will be disclosed in
due course. There can be no assurance, however, that the Company
will be able to restructure its business and affairs.
Frequently Asked Questions
Q. "Is Golden Band
bankrupt"?
A. No, Golden Band is not
bankrupt. To the contrary, the Company is working to develop
and present a proposal to its creditors under Division I of Part
III of the BIA which will enable it to work through its present
financial challenges.
Q. "As a creditor of Golden
Band, will I be paid for goods and services that I provide
to Golden Band?"
A. Golden Band will pay for goods
and services provided to it subsequent to the date of the filing of
the NOI (April 15, 2016) on a cash
basis or on other terms suitable to its suppliers. Under the
BIA, amounts owing by Golden Band to
its creditors for goods and services provided prior to April 15, 2016 ("Pre-NOI Arrears") are
temporarily frozen and cannot be paid by Golden Band.
Creditors of Golden Band who are
owed Pre-NOI Arrears will in due course be asked to file Proofs of
Claim and will have their claims for Pre-NOI Arrears dealt with
through the Proposal to Creditors to be filed by Golden Band.
Q. "How Long Will This Restructuring Process Take?"
A. As a result of the filing of the NOI by Golden Band, a 30-day stay of proceedings (the
"Stay") is in effect (during which creditors may not
commence or continue action against Golden
Band). The Company intends to seek at least one
45-day extension of the Stay from the Court of Queen's Bench for
Saskatchewan. Accordingly, the restructuring of Golden Band will take at least 75 days (and
perhaps longer, as circumstances require) in order to be developed
and implemented. There can be no assurance, however, that the
Company will be able to restructure its business and affairs.
About Golden
Band
Golden Band Resources Inc. is a former gold producer
operating in the La Ronge gold
belt in northern Saskatchewan and
is listed on the TSX Venture Exchange in Canada under the symbol GBN. Commercial
production was declared on April 1,
2011. The Company has suspended mining operations (see news
release of June 30, 2014) but has
been actively exploring the La Ronge Gold Belt since 1994 and has
assembled a land package of 870 km2, including 13 known
gold deposits and five former producing mines, being Jolu, Decade,
Star Lake, EP and Komis (the La
Ronge Project area). On April 15,
2016, the Company filed the NOI to assist its restructuring
efforts.
On behalf of the Board of Directors of Golden Band Resources
Inc.,
"Paul Saxton"
Paul Saxton, CEO
Caution Regarding Forward-Looking Information and
Statements
This news release includes certain forward-looking statements or
information. All statements other than statements of historical
fact included in this release, including, without limitation,
statements regarding the potential restructuring and financing
plans, objectives or expectations of Golden Band Resources Inc.
(Company) are forward-looking statements that 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.
Important factors that could cause actual results to differ
materially from the Company's plans or expectations include risks
relating to the failure to obtain restructuring proposals
acceptable to the Company, necessary regulatory or shareholder
approvals, regulatory changes, timeliness of government or
regulatory approvals and other risks detailed herein and from time
to time in the filings made by the Company. The Company makes all
reasonable efforts to update its corporate information on a timely
basis.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Golden Band Resources Inc.