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Abstract
(Marketwire - Oct. 7, 2011) - Mitchell Adam, President and CEO of Pan Terra Industries Inc. (TSX VENTURE:PNT) ("Pan Terra" or the "Company") is pleased to provide the following update on the company's previously announced acquisition (Stockwatch May 19, 2011) in Namibia, Africa. Pan Terra has entered into a definitive agreement (the "Agreement") effective October 6, 2011 to acquire 80% of the issued and outstanding common shares of Congo Namibia Trading (PTY) Limited ("Congo Namibia"), a private company incorporated under the laws of Namibia, Africa.
Pursuant to the Agreement, Pan Terra has a right of first refusal to acquire up to 10% of Congo Namibia common shares not acquired by Pan Terra in the Transaction. The remaining shares in Congo Namibia are controlled by local Namibian partners. The Transaction is subject to a finder's fee payable in accordance with TSXV policies. The Transaction is arm's length. Completion of the Transaction is subject to a number of conditions, including but not limited to TSXV acceptance, director approvals, the completion of satisfactory due diligence by Pan Terra, and other conditions contained in the Agreement. It is expected that the transaction will close on or before October 31, 2011.
Pan Terra's due-diligence work is progressing well for its previously announced acquisitions of Mertens Mining and Trading Ltd. (Stockwatch May 30, 2011). Pan Terra has received and is responding to due diligence reports on Merten's prepared by Pan Terra's legal advisors in Africa. The acquisition process is behind schedule but the relevant regulatory-document-filing process will begin within the next few weeks. As a result, the deadline for the closing of the acquisition is expected to be extended until November 30, 2011. It is anticipated that a definitive agreement for the Merten's transaction will be executed shortly.