A group of investors based in China is seeking to buy Calgary-based Long Run Exploration.
Long Run Exploration issued a news release on Dec. 21, 2015, announcing details of the proposal.
“Long Run Exploration Ltd. Is pleased to announce that it has entered into a definitive arrangement agreement with a group of investors based in the People’s Republic of China,” begins the news release.
It also says that, after an extensive review of the company’s strategic and financial options to improve its capital structure and create value for stakeholders, Long Run’s board of directors and management team have decided to pursue the agreement.
“The Transaction will be of benefit to Long Run, its stakeholders and employees and Canada,” the news release continues. “Long Run understands that the Purchaser’s plans for the Alberta-based business will provide long-term benefits, including maintaining Long Run’s head office and management in Alberta, enhancing capital expenditures and ensuring employment for Canadians in the continuing operations of Long Run.”
A special meeting of shareholders and debenture holders is supposed to be held in February, where approval for the sale is expected. The sale could be completed in April.
Meanwhile, nothing has changed for Long Run Exploration’s operations in the Smoky River region, says Robert Chenard, the company superintendent in Falher.