VANCOUVER, BC / ACCESSWIRE / April 11, 2019 / King's Bay Resources Corp. (TSX-V: KBG), (FSE: KGB1), (the "Company") announces that that it has terminated the mineral property acquisition agreement for its Lynx Lake project in Newfoundland and Labrador. Pursuant to the 2016 acquisition agreement for the property, if the Company decides to abandon the claims it acquired, it is obligated to transfer the claims back to the original vendors. In the termination agreement, the Company has agreed to the transfer of all the remaining claims to the prior owners, without further obligations regarding the property or the claims.
Since February, 2018, the Company has been considering business opportunities outside of the resource sector (see February 8, 2018 Company news release), and particularly in the cannabis industry. On March 29, 2019, the Company announced that it had entered into an arm's length agreement to acquire all of the issued and outstanding equity of S&S Company, LLC ("S&S"), which owns and operates the licensed S&S California cannabis production and extraction lab, with immediate plans for expansion with high-capacity extraction and distillation under the brand name Elicit Labs (see March 29, 2019 Company news release for more details).
The Company has limited resources and has decided to expend all its time and resources towards getting the S&S acquisition completed. The Lynx Lake project requires expenditure of time and Company resources, which the directors have determined are better spent on completing the S&S acquisition and focus on the Company's new business going forward. The Company's stock remains halted pending closing of the S&S Acquisition and the Company will not come back to trading on the TSX Venture Exchange. An application will be made to list the Company's shares for trading on the CSE in conjunction with the S&S closing.
On Behalf of the Board
Kevin Bottomley President & Chief Executive Officer
O: 604 681 1568
E: Kevin@kingsbayres.com
For Investment Inquiries please contact:
Jared Rushton
O: 604 681 1568
E: jrushton@kingsbayres.com
Forward Looking Statements
This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Forward looking statements in this news release include that we can close the S&S transaction and list the Company's shares on the CSE. Risks that could change or prevent these statements from coming to fruition include that the Company may not receive regulatory approval for listing on the CSE, we may not be able to close our S&S agreement, and even if we carry on the cannabis business, the business may fail or we may not get required regulatory approval. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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: King's Bay Resources Corp.
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https://www.accesswire.com/541684/Kings-Bay-Terminates-Newfoundland-Mining-Project
