December 4, 2013 KEX2013-14
KENT EXPLORATION EXECUTES PROPERTY DISPOSAL AGREEMENT
Graeme O'Neill, President and CEO of Kent Exploration Inc (the "Company") reports that the directors of the Company have determined that it is in the best interests of the Company to reduce project carrying costs and dispose of properties it considers non-core, in order that it can focus on those projects that will better provide shareholder value. Additionally, the Company intends on utilizing any funds received from any dispositions to bolster the Company's balance sheet and to minimize possible future potentially dilutive financings.
The Company's director's consider the three New Zealand gold projects, Alexander River, Red Queen, and Paparoa, along with the historic Bayhorse Silver mine in Oregon as its core projects. Significant funds have already been spent advancing the New Zealand gold projects, and a Diamond drill program is being planned for early 2014, while in the near term, Bayhorse will undergo cleaning of the adits for safe access, and an prepare for underground sampling program.
Additionally, the Company has made an application to the TSX Venture Exchange to rename the Company "Bayhorse Silver Inc" and has applied for a new symbol and CUSIP number.
The Company also reports that as part of the disposal of non-core properties, it has entered into a stock purchase agreement dated December 4, 2013 with SBS Mining Ltd and its Investment Partners, Aurora Industrial Minerals Pte. Ltd. and Planet Group Investment GmbH whereby the Buyers will purchase all outstanding shares of Kent Exploration (USA) Inc. a wholly owned subsidiary of the Company which holds the rights to the Ivanhoe Creek Bentonite property in the State of Nevada, and its wholly owned subsidiary Kent Resources USA Inc., which holds the rights to the Flagstaff property in the State of Washington. SBS and the Company are parties to a loan and option agreement dated August 29, 2012, whereby SBS was granted an option by the Company to acquire the Properties. Accordingly, the Buyers are exercising this option by purchasing all of the outstanding shares of Kent USA, retiring $350,000 in debt, and paying $123,531 in cash while Kent will retain a 30% Net Profit Interest in Kent Resources USA Inc and a 15% Net Profit Interest on the Ivanhoe Creek property.
Subject to acceptance for filing by the TSX Venture Exchange, closing is scheduled for December 4, 2013.
ABOUT KENT EXPLORATION
Kent Exploration Inc. is a junior exploration company with a 100% interest in its three major high grade gold prospects (Alexander River, Paparoa and Lyell), in the highly prolific West Coast South Island gold fields of New Zealand, and is acquiring an 80% interest in the historic Bayhorse Silver Mine in east-central Oregon.
The Company has an experienced management and technical team with extensive exploration expertise and offers investors the potential for a major gold discovery on its New Zealand gold projects and a significant silver discovery at the Bayhorse Silver mine..
This News Release has been prepared on behalf of the Kent Exploration Inc. Board of Directors, which accepts full responsibility for its contents.
ON BEHALF OF THE BOARD
"Graeme O'Neill"
Graeme O'Neill, President
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.
Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company, including with respect to completion of the disposition of assets and the anticipated results thereof. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. There is no guarantee that the disposition will be completed as proposed or at all. The disposition remains subject to approval of the TSX Venture Exchange. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf except as required by law.
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