PROPERTY ACQUISITION /Marchwell Capital Concludes Acquisition of Oil
and Gas Interests
ASE SYMBOL: MHW
JULY 8, 1998
VANCOUVER, BRITISH COLUMBIA--Marchwell Capital Corp. (the
"Corporation") is pleased to announce that it has concluded the
acquisition of certain oil and gas interests (the "Acquisition")
in the areas of Open Creek, Alberta and Nevis, Alberta. (the
"Alberta Assets") pursuant to a Purchase and Sale Agreement made
as of April 14, 1998 with Bonanza Energy Ltd. At the Annual and
Special General Meeting of the Shareholders of the Corporation on
June 30, 1998 the Shareholders approved the Acquisition as the
Major Transaction of the Corporation.
The consideration paid for the Alberta Assets consisted of
approximately $147,514 cash and the issuance of a unsecured
subordinated convertible debenture in the principal amount of
$500,000 bearing interest at a rate of 6 percent per annum. The
terms of the conversion are one Common Share of the Corporation
for each $0.62 of principal amount of the Convertible Debenture.
The consideration is supported by two independent oil and gas
reports prepared by Sproule Associates Limited and O'Neill
Petroleum Exploitation Consultants Ltd.
The Acquisition is non-arm's length as Mr. John Fleming, President
of Bonanza Energy Ltd., is also a shareholder and director of
721073 Alberta Ltd., a company which holds 1,000,000 escrowed
shares of the Corporation.
The Corporation is a junior capital pool company and the
Acquisition of the oil and gas interests in Open Creek, Alberta
and Nevis Alberta, will constitute the Corporation's Major
Transaction pursuant to Rule 46-501 of the Alberta Securities
Commission and Circular No. 7 of The Alberta Stock Exchange. Upon
receiving the final approval of the Acquisition by The Alberta
Stock Exchange, the Corporation will no longer be a junior capital
pool company.
|
