Vancouver, BC / TheNewswire / December 5, 2016 - Newcastle Energy Corp. (the “Company”), TSX NGY.H The Board of Directors of the Company (the “Board”) is pleased to announce that an annual and special meeting of the Company’s shareholders will be held on January 12, 2017 (the “Meeting”).  In addition to the standard items of business at general meetings, shareholders will be asked to approve a special resolution to authorize the Board to proceed with a cash distribution to shareholders of $0.50 per share as a return of capital (the “Distribution”).  If the proposal is approved by the requisite majority of shareholders represented at the Meeting in accordance with the Business Corporations Act (British Columbia), a record date to determine shareholders entitled to receive the Distribution will be fixed soon after the Meeting, with the Distribution to follow shortly thereafter.

 

Subject to a more detailed discussion of the Distribution and the related tax consequences that will be contained within the Company’s information circular for the Meeting, generally speaking, a Canadian shareholder who receives a pro-rata portion of the Distribution will have the adjusted cost base of their shares of the Company lowered by the amount of the money received from the Distribution.  Notwithstanding the foregoing, it is recommended that all shareholders of the Company should seek their own advice concerning the tax consequences of the Distribution. No advance tax ruling has been sought or obtained by the Company from the Canada Revenue Agency concerning the tax consequences of the Distribution.

 

ON BEHALF OF THE BOARD

Mr. Greg Amor,

CEO, Director

Newcastle Energy Corp.

 

Forward Looking Statements: This news release contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Forward-looking statements in this release include statements regarding the timing and completion of the Distribution and the tax consequences to each shareholder resulting from the Distribution. Factors that could cause such differences include: the Distribution may not be approved by the shareholders or the securities regulators; or that the Board may, in its discretion, decide not to proceed with the Distribution for any reason whatsoever. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding and are implicit in, among other things, the timely receipt of any required regulatory approvals. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.