VANCOUVER, British Columbia, April 28, 2005 (PRIMEZONE) -- Krifter Holdings Inc. (Pink Sheets:KFTH) today announced that it has entered into a Letter of Intent with San Kung Forest Products Limited ("San Kung") of Papua New Guinea to acquire 20% of the Gross Revenue generated from San Kung's hardwood logging operations.
San Kung Forest Products Limited is the owner of exclusive forestry licenses granted by the government of Papua New Guinea for the region known as the Kunama Timber Area. Registered as Forest Industry Participant Number F1908, San Kung has been authorized by the Papua New Guinea government to establish low impact logging operations with a view to exporting "kiln ready" timber products. San Kung Forest Products Limited has initial sales contracts in place for the delivery of 30,000 cubic meters of hardwood timber products annually. These initial contracts are potentially representative of over US $10,000,000 in Gross Revenue annually to San Kung, subject to commodity price fluctuations. It is envisaged that San Kung will grow the operation significantly on the strength of these initial contracts.
Pursuant to the proposed joint venture, on closing, Krifter Holdings Inc. would pay San Kung Forest Products Inc. US $150,000 and a to be agreed on amount of restricted common stock as consideration for the 20% interest of the Gross Revenue generated annually by San Kung.
Krifter Holdings Inc. is in the process of seeking financing opportunities and is considering debt, equity or a combination thereof for the purpose of closing the transaction with San Kung.
About Krifter Holdings Inc.
The mandate of Krifter Holdings Inc. is to identify unique industrial opportunities in emerging markets and to seek proprietary technologies with the potential for commercialization.
It is the intention of Krifter to develop into a diverse holding company with interests in join ventures, carried royalties and/or direct shareholdings in our target opportunities.
This press release may contain certain forward-looking information and statements concerning the company's operations, performance and financial condition, including, in particular; the ability of the company to conclude a transaction with San Kung Forest Products Limited; the ability of the company to attract technologies for development and successfully develop any technologies. These statements are based upon a number of uncertainties and contingencies, many of which are beyond the control of the company. Actual results may differ materially from those expressed or implied by such forward-looking statements. This document is not intended to be and is not an advertisement for any securities of the company.
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