Vancouver, B.C., January 30, 2013. Confederation Minerals Ltd. (“Confederation” or the “Company”) is pleased to confirm that, further to the Company’s news releases dated November 27, 2012 and December 19, 2012, effective December 19, 2012 the Company completed the distribution of 21,086,656 common shares (the “Magna Shares”) of Magna Resources Ltd. to the holders of record as of November 27, 2012 (the “Confederation Shareholders”) as a return of capital.
The Company intends to take the position for tax and financial reporting purposes that the effective date of the distribution was December 19, 2012 and will be determining the fair market value of a Magna Share on that date in order to report the appropriate reduction of capital. This determination of value will not be binding on the Canada Revenue Agency and it is possible that the Canada Revenue Agency could take a contrary view. Also the value may or may not be suitable for Confederation Shareholders to use for Canadian income tax purposes. Therefore, Confederation Shareholders should refer to the general tax disclosure contained in our news release dated November 27, 2012 and consult their own tax advisors in regards to the tax consequences of the distribution in their particular circumstances.
About Confederation Minerals
Confederation Minerals Ltd. is a British Columbia based company engaged in the business of acquisition, exploration and development of mineral properties. Its objective is to locate and develop economic precious and base metals properties of merit. Confederation Minerals Ltd. holds an option agreement to acquire up to 70% of the Newman Todd project in the Red Lake Mining District of Northern Ontario as well as 100% ownership in another property in the Red Lake Mining District of Ontario.
On Behalf of the Board:
Brian Bapty, Ph.D.
President and Director
Confederation Minerals Ltd.
Suite 1980, 1075 West Georgia Street
Brian Bapty, President and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", “proposes”, "project", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.