Cadillac, KFG agree to merge

2020-11-04 06:15 MT - News Release

See News Release (C-CDC) Cadillac Ventures Inc (2)

Mr. Norman Brewster of Cadillac reports

CADILLAC VENTURES INC. AND KFG RESOURCES LTD. AGREES TO PURSUE AN AMALGAMATION

Cadillac Ventures Inc. and KFG Resources Ltd. have signed a letter of intent to pursue an amalgamation, with the support of both boards, subject to approval by shareholders of each company and TSX Venture Exchange approval. The amalgamation will proceed with an exchange of KFG common shares for Cadillac common shares on a one for one basis.

The companies believe that the amalgamation will create significant value for both shareholder groups. As such, the boards of directors of both companies have agreed specific terms of the proposed transaction will be determined based on corporate, tax and securities laws, and other considerations. The principals of both Cadillac and KFG will provide support agreements for the transaction.

Following completion of the amalgamation, Cadillac will proceed to effect a consolidation of its shares, expected to be on a 1:3 basis.

The directors of KFG wish to thank their shareholders for their support during the downturn of the oil market over the past several years. They believe that the proposed transaction with Cadillac can create a new and more impressive company with diversified assets, cash flows and reduced costs to make the company's oil production more lucrative. Both Mr. Haney and Mr. Grassi approve of the transaction and urge all KFG shareholders to follow suit.

The directors of Cadillac believe that the cash flow provided by the oil revenue related to this transaction will allow the company to be more effective in the review and acquisition of additional mineral properties. The directors urge Cadillac shareholders to support the transaction.

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