Newland acquires assets worth $44m

June 20, 2008

June 20th (WA Business News) – Perth-based explorer Newland Resources Ltd has entered into an agreement to acquire a share of assets worth $44 million from Pacific International Management Inc.

Newland has entered into a letter of intent with the Pacific to acquire a 50 per cent interest in UK company Zeus Petroleum Ltd and a 26 per cent interest in British Virgin Islands company, South American Ferro Metals Ltd, which has iron ore assets in Brazil.

Newland said the 50 per cent interest In Zeus is worth $32 million while the interest in South American Ferro Metals is worth $12 million.

Consideration for the proposed deal is the issue of 28 million Newland shares to Pacific and $30 million of five year convertible notes with a coupon rate of 8 per cent at 50c per Newland share.

The full announcement is below:

Newland Resources Limited (Newland) is pleased to announce that it has entered into a letter of intent with Pacific International Management, Inc. (PIM) in relation to a proposed acquisition of interests from PIM (Proposed Acquisition).

Proposed Acquisition

Under the Proposed Acquisition, Newland proposes to acquire the following interests from PIM:

– a 50% interest in the issued share capital of Zeus Petroleum Ltd (Zeus), a United Kingdom petroleum exploration company; and

– a 26% interest in the issued share capital of South American Ferro Metals Limited (SAFM), a British Virgin Islands company with Brazilian iron ore assets.

Consideration for the Proposed Acquisition is the issue by Newland to PIM of:

– 28 million fully paid ordinary Newland shares; and

– $30 million of 5 year convertible notes with a coupon rate of 8%, convertible at $0.50 per Newland share.

Newland attributes a value of $32 million to the 50% interest in Zeus, and $12 million to the 26% interest in SAFM.

The Proposed Acquisition is subject to a number of conditions precedent, including the following:

– the satisfactory outcome of due diligence enquiries to be undertaken by Newland;

– entry into formal binding agreements in relation to the Proposed Acquisition;

– approval of the Proposed Acquisition by Newland shareholders in general meeting in accordance with all regulatory requirements; and

– compliance with the requirements of the ASX Listing Rules. Newland Resources Ltd


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