Mr. Leonard Clough reports
STANDARD TOLLING PLANS ORE PURCHASE FINANCING
Standard Tolling Corp. has arranged a non-brokered private placement of units to
raise gross proceeds of up to $2.25-million. The net
proceeds of the financing will be segregated and used to finance and
maintain a minimum of two months inventory ore purchases and a
$250,000 (U.S.) installation of carbon stripping on the toll milling plant,
located in Huamachuco, Peru. Construction and upgrades will continue
after the financing closes.
Leonard Clough, chief executive officer of the company, stated: "The completion of this
financing will mark a major milestone for Standard Tolling. It will
provide the company the necessary capital to commence our ore buying
strategy and begin stockpiling. We would like to give special thanks to
the agents who are working with us to tailor make a debt solution that
provides us with maximum financial flexibility going forward."
Each unit of the financing will comprise one ore purchase
note of the company priced at $1,000 (U.S.) and 500 share purchase
warrants subject to a minimum purchase of 50 notes. The
notes shall bear interest at a rate of 10 per cent per year payable quarterly
in arrears, and shall entitle the holders thereof to a further pro rata
payment representing an aggregate of 2 per cent of net revenues from the
company's toll processing facility in Peru upon the commencement of
commercial production. The notes will mature three years from the date
of issue. The company will have the right (upon 90 days prior written
notice to the affected holder) to redeem notes in part or in full at a
price of $1,100 (U.S.) per each redeemed note plus payment of all accrued
amounts due in respect of the redeemed notes. The holders of the notes
shall be granted certain security in respect of the company's ore
purchases. In addition, the purchasers of the notes shall be granted
pre-emptive rights during the time they hold the notes to participate in
any future debt securities of the company where the principal purpose of
financing the purchase of ore.
Each whole warrant will entitle the holder to acquire one additional
common share in the capital of the company until the date which is five years following the closing date
(which is expected to be on or about March 15, 2015) at a price of
25 cents per warrant share.
The financing is subject to compliance with applicable securities laws
and to receipt of regulatory approval. The company may pay up to 10 per cent of
gross proceeds to eligible finders.
We seek Safe Harbor.
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