Kesselrun Resources Files Notice of Application in Respect of Convertible Debenture Dispute
THUNDER BAY, ON, October 12, 2016 – Kesselrun Resources Ltd. (TSXV:KES) (“Kesselrun” or the “Company”) announces that it has filed a Notice of Application with the Ontario Superior Court of Justice in connection with its previously announced dispute with Tamaka Gold Corporation (“Tamaka”) concerning three senior unsecured convertible debentures of Tamaka held by Kesselrun in the aggregate principal amount of $2,139,900 (the “Debentures”). The Debentures are automatically convertible into common shares of Tamaka at a prescribed rate upon the occurrence of a “Liquidity Event” (see Kesselrun press release dated November 20, 2013). As previously announced, Kesselrun believes that the recent transaction (the “Acquisition”) pursuant to which Tamaka became a wholly-owned subsidiary of First Mining Finance Corp. (TSXV:FF) (“First Mining”) constituted a Liquidity Event and a change of control of Tamaka pursuant to the terms of the Debentures, and should have resulted in an automatic conversion of the Debentures effective immediately prior to the closing of the Acquisition. First Mining has asserted that there was no Liquidity Event.
Kesselrun will provide further updates in due course as they become available.
About Kesselrun Resources Ltd.
Kesselrun Resources is a Thunder Bay, Ontario-based mineral exploration company focused on growth through property acquisitions and discoveries. Kesselrun's management team possesses strong geological and exploration expertise with particular experience in Northwest Ontario. For more information about Kesselrun Resources, please visit www.kesselrunresources.com.
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For additional information please contact:
Kesselrun Resources Ltd.
Michael Thompson, P. Geo., President & CEO