Pan PacificAggregate – Acquisition – 11/06/2008

    RNS Number : 4258W

  Pan Pacific Aggregates PLC

  10 June 2008

    11 June 2008

    Pan Pacific Aggregates PLC ("the Company")
    Acquisition of Pumptown Quarry Inc. and CNI Equipment Ltd. ("the Acquisition") from Columbia National Investments

Ltd. ("CNI")
    Today, and as outlined in the circular to shareholders dated 2 May 2008, the Company completed the acquisition of

Pumptown Quarry Inc. ("Pumptown") and CNI Equipment Ltd ("CNI Equipment"). The consideration for the Acquisition was a

cash payment of CAN$400,000 and 80,000,000 ordinary shares ("Shares"), comprising approximately 43% of the enlarged

issued share capital of the Company. Application has been made for the Shares to be admitted to AIM and it is expected

that this will happen on Monday 16 June.
    Information on the Acquisition
    Pumptown

    Pumptown operates a hard rock quarry, and an associated equipment and truck rental business located in Abbotsford in

British Columbia. Historically these operations were included within CNI's overall results. Unaudited management

accounts for the period from 1 June 2007 to 31 March 2008 show total revenues of CAN$2,275,637 and an operating profit,

after sale of processed aggregate, of CAN$606,425. According to those accounts, the total assets of Pumptown as at 31

March 2008 amounted to CAN$2,508,439.86, with total liabilities of CAN$1,902,014.17, including a mortgage of CAN$1.6

million secured on the quarry business.
    CNI Equipment

    CNI Equipment leases and operates certain quarrying equipment. On completion of the Acquisition, it has assumed the

obligations of lessee of other equipment currently leased by Pumptown and Columbia National Forest Products Ltd. CNI

Equipment's unaudited management accounts for the period 1 September 2007 to 31 March 2008 show total revenues of

CAN$32,077 and profit before tax of CAN$18,752. According to those accounts, the total assets of CNI Equipment as at 31

March 2008 amounted to CAN$406,706 with total liabilities of CAN$387,954. The leases transferred from Pumptown and

Colombia National Forest Products Ltd are operating leases and are therefore not expected to impact on the enlarged

Group's balance sheet. There are no significant profits attributable to the transferred leases from Columbia National

Forest Products Ltd. The profits from the transferred leases from Pumptown are currently accounted for in the accounts

of Pumptown as described above. The leased equipment includes excavators, trucks, bulldozers and fixed quarrying

equipment such as rock crushing and screening equipment. The Company intends to utilise the equipment on both its own

and third party quarries and on appropriate remunerative third party assignments such as road clearing with local

authorities. 
    Proposed new directors

    The two owners of CNI, brothers Herbert James Dunton and Robert Stephen Dunton, are expected to join the Board of

the Company as non-executive directors after the Company's forthcoming AGM in July. The brothers have been business

partners since shortly after high school graduation in the late 1970's. In 1988, after working together on various house

building and land assembly projects, they began to collaborate in the real estate investment and development business. 
    Herbert James Dunton

    Herb is President and co-founder of CNI, a land acquisition and development company incorporated in British Columbia

in 1992. He is a practising lawyer and member of the Law Society of British Columbia and the Canadian Bar Association.

Herb was born and raised in Victoria, B.C., and graduated from Summit Pacific College, with a diploma in Theology, and

Vanguard University in southern California with a Bachelor's degree in History and Political Science. He received his

LL.B. (law degree) from the University of British Columbia.
    Robert Stephen Dunton

    Steve is the CEO and co-founder of CNI and has worked at CNI since its formation. Steve was born and raised in

Victoria, B.C. He has been asked to serve as a business advisor, facilitator, and public speaker to business leaders and

not-for-profit organisations locally and abroad and to government leaders in developing nations. 
    On being appointed to the Board at the AGM, each of Herb and Steve Dunton are expected to enter into a letter of

appointment with the Company providing for him to become a non-executive director of the Company for an initial term of

one year, following which either party may terminate the appointment on three months' notice, not to expire earlier than

the end of such intial term. Neither of Herb and Steve Dunton will receive a fee in relation to their appointment, but

they will be entitled to reimbursement of their reasonable expenses. 
    The new directors and the Acquisition will provide the Company with the expertise, resources and equipment to allow

it to support the development of the enlarged Group whilst also providing some positive cash-flow. 
    Enquires:

    Pan Pacific Aggregates PLC

    William Voaden                                               Tel: 020 7096 9580
    Hanson Westhouse Limited

    Louis Castro                                                     Tel: 020 7601 6100

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