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Abstract
(CCNMatthews - July 18, 2006) - DIVESTCO INC. (TSX:DVT) ("Divestco" or the "Corporation") is pleased to announce that it has acquired all of the issued and outstanding shares of Calgary based Cavalier Land Ltd. ("Cavalier") and its affiliate Agadir Resources Inc. ("Agadir"), for C$7.5 million. At closing, C$4.375 million of the purchase price was paid in cash and C$1.875 million worth of Divestco common shares were issued at a deemed price of $5.09 per share (subject to a 4-month hold period). The share price was based on Divestco's 45-day weighted average trading price ending on the day prior to this announcement. The TSX has granted conditional approval for the share issuance. The remaining C$1.25 million will be paid over a two-year period subject to certain milestones. All payments are subject to the conditions set out in the Acquisition Agreement. Invico Capital Advisory Services Inc. provided corporate advisory services to Cavalier with respect to the transaction.