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Polaris and Debt Holders Agree to Defer Interest Payment

Wednesday, July 04, 2012 6:47 PM

VANCOUVER, July 4, 2012 /CNW/ - Polaris Minerals Corporation (TSX:PLS) (the "Company") advises that it has reached agreement, subject to definitive documentation, with the holders of its Senior Secured Notes (the "Notes") to defer the interest payment due on June 30th, 2012.

This interest installment will now be paid upon the earlier of: (i) the completion of the sale of the Company's jointly held Pier B freehold land; and (ii) December 31, 2012. The Company agreed to pay a monetary fee of $89,100 through the issuance of an aggregate of 148,500 common shares, based upon the closing price of the Company's common shares of $0.60 on June 28, 2012.

Herb Wilson, President and CEO, commented:  "We have taken this step as a matter of prudent management while we await cash receipts of approximately $12 million from the anticipated sale of the Company's jointly owned Pier B freehold land. We are encouraged by the progress made so far and hope to complete the sale around the end of the third quarter."

Polaris Minerals Corporation is exclusively focused on the development of quarries and the production of construction aggregates in British Columbia for marine transport to urban markets on the Pacific coasts of North America to meet growing local supply deficits. In 2007, Polaris began shipping sand and gravel from the Orca Quarry to San Francisco Bay, Vancouver and Hawaii.

This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws.  These statements and information appear in this document and include estimates, forecasts, information and statements as to management's expectations with respect to, among other things the future financial or operating performance of the Company, the anticipated sale of the Pier B freehold land, payment of the interest installment due on June 30, 2012, costs and timing of the development of the construction aggregate quarry, the timing and amount of estimated future production, costs of production, capital and operating expenditures, requirements for additional capital, government regulation of quarrying operations, environmental risks, reclamation expenses, and title disputes.  Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology.  Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies.  Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.  Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risks and Uncertainties" in the Company's Annual Report and under the heading "Risk Factors" in the Company's Annual Information Form (AIF) in respect of its financial year-ended December 31, 2011, both of which are filed with Canadian regulators on SEDAR (www.sedar.com).  The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise.  All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.


Herb Wilson, President and CEO, 
Polaris Minerals Corporation
Tel: (604) 915-5000
info@polarmin.com

(Source: CNW )
(Source: Quotemedia)

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