Helio Rejects Shanta Gold's Invalid Attempt to Terminate Arrangement Agreement
Helio Rejects Shanta Gold's Invalid Attempt to Terminate Arrangement Agreement
TSX-V Trading Symbol: HRC
E-mail:
Phone: +1 604 638 8005
Website:
www.helioresource.com
VANCOUVER
,
Sept. 6, 2017
/CNW/ - Helio Resource Corp (TSX-V: HRC), ("Helio" or the "Company") reports that, after careful consideration, it has concluded
that there is no proper basis for
Shanta Gold's
purported termination of the arrangement agreement between
Shanta Gold
and the Company. Accordingly, the
arrangement agreement remains in effect and Helio expects
Shanta Gold
to satisfy its obligations thereunder, including taking all commercially reasonable
actions required to complete the transaction.
Richard Williams
, Helio's CEO, said "We strongly disagree with
Shanta Gold's
assertion that the recent changes to
Tanzania's
mining laws amount to a material
adverse effect as defined in the arrangement agreement and reject their opportunistic attempt to walk away from their obligations. We believe that combining
Shanta Gold
and Helio continues to make sense for both companies and are disappointed that our partner in this transaction chose to take this drastic step
without any prior discussions."
Helio intends to vigorously enforce all of its rights under the arrangement agreement and seek to consummate the merger on the agreed terms.
About Helio Resource Corp.
Helio Resource Corp. is a resource company focused on advancing the 100% owned SMP Gold Project in
Tanzania
to a production decision.
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams"
Richard D. Williams
, P.Geo
Statements Regarding Forward-Looking Information
Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking
information is identified by words such as "anticipated", "estimates", "intends", "expected", "believes", "may", "will" and include, without limitation, statements
regarding the steps that Company expects to take in response to
Shanta Gold's
purported termination of the arrangement agreement between
Shanta Gold
and
the Company. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such
statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks,
uncertainties regarding the outcome of any litigation involving the Arrangement Agreement, labour risks, uncertainty of mineral resource estimates, equipment and
supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not
to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly
disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Neither the 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
Helio Resource Corp.
View original content: http://www.newswire.ca/en/releases/archive/September2017/06/c8410.html
%SEDAR: 00012999E
For further information:
For additional information please contact Richard Williams at 604 638 8005.
CO: Helio Resource Corp.
CNW 08:00e 06-SEP-17