21:16:54 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Standard Tolling Corp (2)
Symbol TON
Shares Issued 54,450,486
Close 2015-07-02 C$ 0.12
Market Cap C$ 6,534,058
Recent Sedar Documents

Standard Tolling closes final tranche of placement

2015-07-02 17:09 ET - News Release

Mr. Len Clough reports

STANDARD TOLLING CLOSES FINAL TRANCHE ORE PURCHASE FINANCING

Standard Tolling Corp. has closed the fifth and final tranche of a non-brokered private placement of units to raise gross proceeds of $634,000 (U.S.). The aggregate amount raised from the debt offering is $2.25-million (U.S.) including this final balance that closed on July 2, 2015.

Leonard Clough, president and chief executive officer, commented: "We are delighted to close the final tranche of the secured debt offering and would like to thank our finance partners. As a result of the final closing, the company anticipates that it now has sufficient capital to build the inventories required to operate the plant at 100 tonnes per day. Ore purchases are ramping up, and, with the recent installation of the on-site laboratory, we expect transaction times to improve, which will accelerate ore purchase activities. Our goal of being a transparent, high-quality, local ore-processing provider to the miners of northern Peru is nearing fruition."

Debt offering

On July 2, 2015, the company issued 634 notes (described herein) and 317,000 debt warrants (described herein) to raise gross proceeds of $634,000 (U.S.). Each unit comprises one ore purchase note of the company priced at $1,000 (U.S.) and 500 non-transferable share purchase warrants. The notes shall bear interest at a rate of 10 per cent per annum 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 may, 12 months after the date of issue of the note, 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.) for 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 the financing is the purchase of ore. Each debt warrant will entitle the holder to acquire one additional common share in the capital of the company until the date which is three years from the date of issue at a price of 25 cents per debt warrant share. All securities issued in connection with the fifth and final tranche of the debt offering are subject to a hold period in Canada expiring on Nov. 3, 2015. The company paid $50,720 (U.S.) and issued 79,250 debt warrants as a finder's fee in connection with the debt units issued.

A total of $1.75-million (U.S.) will be segregated from the net proceeds of the total debt offering to be used to finance and maintain a minimum of two months inventory ore purchases for the toll-milling plant, located in Huamachuco, Peru.

We seek Safe Harbor.

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