VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 03/12/12 — Palo Duro Energy Inc. (“Palo Duro” or the “Company”) (TSX VENTURE: PDE) continues to make progress on the acquisition (the “Acquisition”) of the shares of African Resource Holdings Limited (“African Resource”) originally announced June 29, 2011. In connection with its due diligence investigation, Palo Duro requested that African Resource obtain the approval of the Minister of Mines of the Republic of Guinea to the amendment and extension of one of African Resource–s four mining licenses. African Resource has made application for the requested amendment and extension but has yet to receive the necessary approval of the Minister of Mines. The Republic of Guinea introduced a new mining code in 2011, which is receiving significant criticism from the mining industry. The Company understands that the introduction of the new mining code and the industry–s response are resulting in delays in ministerial action. The Company remains hopeful that the necessary changes to the license will be approved and that the Acquisition may proceed.
The closing of the Acquisition continues to be subject to a number of conditions, including: (a) entering into a formal binding agreement; (b) completion of due diligence; (c) a filing for the TSX Venture Exchange (the “Exchange”) to review and their approval; (d) the approval of the shareholders of Palo Duro; and (e) completion of a financing to raise up to $3,000,000 by Palo Duro. The proposed Transaction has not been approved by the Exchange and remains subject to Exchange acceptance.
In accordance with TSX Venture Policy 2.5, the Company has not maintained the requirements for a TSX Venture Tier 2 company, therefore the Exchange has informed the Company that upon resumption of trading that the Company–s listing will transfer to NEX, the Company–s Tier classification will change from Tier 2 to NEX and the Filing and Service Office will change from Vancouver to NEX. As a result of the transfer to NEX, the Company is subject to restrictions on share issuances and certain types of payments as set out in the NEX policies.
The trading symbol for the Company will change from PDE to PDE.H. There is no change in the Company–s name, no change in its CUSIP number and no consolidation of capital. The symbol extension differentiates NEX symbols from Tier 1 or Tier 2 symbols within the TSX Venture market.
Palo Duro Energy Inc.
Bill Koutsouras, President & CEO.
Certain statements contained in this news release constitute “forward-looking information” as such term is used in applicable Canadian securities laws, including information regarding the Acquisition and the listing on NEX. Forward-looking information is based on plans and estimates of management at the date the information is provided and certain factors and assumptions of management. Forward looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risks that the Acquisition may not close, the related to international operations and doing business in foreign jurisdictions, risks associated with the oil and gas industry and exploratory and development activities generally (e.g., operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, risks associated with equipment procurement and equipment failure), the risk of commodity price and foreign exchange rate fluctuations, risks related to future royalty rate changes, and risks and uncertainties associated with securing and maintaining necessary regulatory approvals.
Shares Outstanding: 32,218,347
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.
Contacts:
Palo Duro Energy Inc.
Investor Relations
1-604-639-4673
1-604-639-4670 (FAX)