CALGARY, Canada, Nov. 30, 2012 /PRNewswire/ -- FEC RESOURCES INC. (OTCBB: FECOF, Frankfurt/Munich: FE8) ("FEC") wishes to provide the following corporate update.
Lascogon Mining Corporation ("Lascogon")
The Company was given until December 17, 2012 to determine whether it would provide its share of a capital call for 100 million Philippine Pesos or approximately US$2,400,000. The total work program over 2 years was estimated at approximately US$15,400,000 of which the Company's portion would have been approximately US$6,000,000.
The work program was designed to test deeper targets within the MPSA 148. Drilling was planned to test depths of 800 meters to 1,000 meters for porphyry copper and gold. Previous results from shallow drilling were not encouraging.
The Company has decided that it is not in its best interest to meet the capital call because the project is too high risk and also because there would be a large dilution in seeking funding for the project at the current market price.
As a result of not participating, the Company will be diluted to a 1.08% interest in Lascogon. The Company is currently in discussions with Philex Mining Corporation ("Philex"), its parent company and joint venture partner, with respect to being able to buy back its percentage in the future with a penalty.
Debt Repayment
In December 2009, the Company was advanced US$273,000 by Philex. The loan was unsecured and was originally due on December 31, 2010. The Company has now received a demand notice for the repayment of the loan. The estimated repayment including interest is US$312,000.
Corporate Changes
Mr. Edward Tortorici has resigned from the Board of Directors of the Company.
Mr. Paul Wallace has been appointed to the Board in Mr. Tortorici's place. Mr. Wallace is a Chartered Accountant and member of the Canadian Institute of Chartered Accountants. He was appointed as the Chief Financial Officer of Hong Kong based First Pacific Company Limited from 1995 to 1997 and between 2003 and 2004. He was appointed Group Finance Director to the Sanctuary Group plc between 2005 and 2008. Mr. Wallace was appointed as Chief Executive Officer of Blue Ocean Wireless Limited in May 2009, and as a Non-Executive Director of JPMorgan Global Emerging Markets Income Trust Plc in June 2010.
Mr. Carlo Pablo has been appointed President of the Company replacing Mr. Jose Villaluna. Mr. Villaluna will remain on the Board of Directors.
On behalf of the Board of,
FEC Resources Inc.
Carlo Pablo
Chairman
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any natural resources that may be located, variations in the market price of any natural resource products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce natural resources from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's Annual Report on Form 20-F for the year ended December 31, 2011 and its most recent quarterly reports filed with the United States Securities Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed via www.sec.gov, and readers are urged to review these materials.
For more information please contact (403) 290-1676, e-mail [email protected] or visit the FEC Resources website at www.FECResources.com
SOURCE FEC Resources Inc.
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