VANCOUVER, British Columbia, July 9, 2010 (GLOBE NEWSWIRE) -- New High Ridge Resources Inc. (the "Company") (TSX-V:NHR) today announced that it is proceeding with a proposed new business venture involving the development, processing and marketing of nutraceutical and other food ingredients ("BioExtracts"). The Company has entered into a letter of intent (the "LOI") dated July 5, 2010, with BGL, LLC ("BGL") whereby BGL will lease equipment and license certain intellectual property owned by BGL and provide consulting services to the Company in order to enable the Company to process, extract and market nutritional bio-actives and ingredients from berry and aquaculture feed stock biomasses. All agreements contemplated by the LOI are collectively referred to as the "Transaction". BGL is a Wisconsin corporation which over the past 10 years has developed and owns certain proprietary equipment, processing technology and intellectual property related to the processing and production of high value nutrients and biological oils from a range of organic materials.
The Company has also entered into a consulting agreement (the "Consulting Agreement") with BGL effective July 1, 2010, for an initial term of three (3) months at the rate of US$20,833 per month, whereby BGL shall assist in the development of the equipment and intellectual property necessary to execute the Company's BioExtracts business plan. Upon successful completion of the initial term and receipt of all necessary approvals for the Transaction, the Consulting Agreement may be extended to a three (3) year term at the same rate of compensation.
The LOI contemplates that in addition to the Consulting Agreement, the Company will enter into an equipment lease agreement for the sum of US$1,500,000 payable over a period of three years, and will also license certain intellectual property from BGL required to manufacture certain products. The Company shall have the option to purchase the equipment and the rights to certain related intellectual property from BGL for the sum of US$3,000,000 (less all lease payments made) payable in shares or in a combination of shares and cash.
The Transaction is a "Change of Business" under the policies of the TSX Venture Exchange (the "Exchange"), therefore the Transaction is subject to Exchange acceptance and shareholder approval if required by the Exchange. In addition, in order to proceed with the BioExtracts business plan the Company must complete a substantial financing, details of which will be announced in due course.
The Company is proceeding with its due diligence and negotiation of the terms of the definitive agreements with respect to the Transaction which is expected to close on or about September 30, 2010, subject to receipt of all necessary approvals and completion of the financing. Sponsorship of the change of business is generally required by the Exchange unless exempted in accordance with Exchange policy, however a sponsor has not yet been engaged.
There is no certainty that the Company will complete the proposed Transaction as proposed or at all. Accordingly, investors are cautioned that, except as disclosed in a management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon.
About New High Ridge Resources Inc.:
The Company has interests in two advanced exploration projects in British Columbia; the Chuchi property (Cu-Au porphyry) 30 km NW of Terrane's Mt. Milligan project; and the Newton Mountain property (Au-Cu porphyry) 35 km N. of Taseko Mine's Prosperity (formerly Fish Lake) Au-Cu project.
About BGL, LLC
BGL, LLC is located in central Wisconsin. Owner, Bernie Lager II has over three decades of experience in food processing and formulation. He designed and built the essential components of the BGL process, and developed the ingredients BGL produces.
The company's primary process technologies are low temperature drying and all-natural oil extraction and refining. It processes a range of raw materials, including oil seeds, fruits, crustaceans, and algaes. From these biomasses oils, meals, powders are produced. Proprietary nanodispersion technology can be used to blend essential fatty acids and oils with aqueous solutions.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements: The above 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. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery processes. 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.