Asset Acquisition, RTO, Change of Business Dateline, Wednesday, September 11, Vancouver, BC: Earl Resources Limited (TSX-V: ERL) (“the Company”) announces that it has entered into two arm’s length asset purchase agreements dated 9th September, 2002 to acquire 100% of Cambodia’s Magnum lottery license (“Magnum Agreement”) from its Singaporean licensee, Mr Khoo Hang Peng (“Magnum Seller”) and 100% of Cambodia’s MGM lottery license (“MGM Agreement”) from its Singaporean licensee, Mr Khoo Kim Leng (“MGM Seller”) through a reverse takeover transaction. Currently, the Magnum Cambodia Lottery Company is the management company operating the Magnum lottery business for the Magnum Seller, and MGM Sports Company Limited is the management company operating the MGM lottery business for the MGM Seller.
Under the terms of the Magnum Agreement, the Magnum Seller has agreed that the Company will
purchase 100% of the Magnum Lottery License (“Magnum License”) in consideration of the Company issuing to the Magnum Seller 5,980,241 of its common shares (the “Magnum Payment Shares”) at a deemed price of Canadian $0.58 per share and the Magnum Seller and Magnum Cambodia Lottery Company will continue to operate the Magnum lottery business on behalf of the Company. The Magnum Agreement contains a provision that guarantees that the Magnum lottery business will generate a net profit after tax of not less than US$480,000 per year over the next two-year period.
Under the terms of the MGM Agreement, the MGM Seller has agreed that the Company will purchase 100% of the MGM Lottery License (“MGM License”) …Read More