Greencastle to acquire 480,000 Future Fuels shares

Executive Summary

• Greencastle Resources Ltd. has entered into a share purchase agreement to acquire 480,000 common shares in Future Fuels Inc. from an arm's-length third party.
• The transaction is structured as a non-cash exchange, with Greencastle issuing 4.8 million of its own common shares from treasury as consideration.
• The acquisition is intended for investment purposes to provide exposure to potential commodity-cycle upside and complement Greencastle's portfolio in the resource sector.

Key Details

• Target Company: Future Fuels Inc.
• Shares Acquired: 480,000 common shares in the capital of Future Fuels Inc.
• Consideration Structure: Non-cash; issuance of 4.8 million common shares from Greencastle's treasury.
• Deemed Price: $0.05 per share.
• Aggregate Deemed Value: $240,000.
• Cash Consideration: None.
• Pre-Transaction Holding: Greencastle held no securities of Future Fuels prior to this acquisition.
• Purpose: Investment purposes; strategy to pursue selective positions in prospective resource companies and projects.
• Closing Conditions: Subject to customary conditions, including receipt of necessary corporate approvals and acceptance by the TSX Venture Exchange (TSX-V) for the issuance of consideration shares.
• Share Restrictions: Consideration shares are subject to a statutory hold period of four months and one day from the date of issuance.
• Listing: Consideration shares expected to be listed on the TSX-V upon expiry of the hold period, subject to TSX-V acceptance and compliance with listing requirements.
• Vendor Status: Arm's length to the company.
• Fees: No finders' fees or commissions payable.
• Related Party Status: Does not constitute a related party transaction under Multilateral Instrument 61-101.

Notable Quotes

• "The acquisition is being completed for investment purposes and is consistent with the company's strategy to pursue selective positions in prospective resource companies and projects."
• "Future Fuels is engaged in the resource sector, and the company believes that the acquisition provides attractive exposure to potential commodity-cycle upside and complements the company's broader portfolio focus."