WHITE ROCK, British Columbia -- (Business Wire)
Standard Tolling Corp. (TSX-V: TON, Frankfurt: GA0, “Standard Tolling”
or the “Company”) announces a non-brokered private placement of units to
raise gross proceeds of up to US$2,250,000 (the “Financing”). The net
proceeds of the Financing will be segregated and used to fund and
maintain a minimum of two months inventory ore purchases and a
US$250,000 installation of carbon stripping on the toll milling plant,
located in Huamachuco, Peru. Construction and upgrades will continue
after the Financing closes.
Leonard Clough, CEO 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 (a “Unit”) of the Financing will comprise one ore purchase
note of the Company priced at US$1,000 (a “Note”) and 500 share purchase
warrants (a “Warrant”) subject to a minimum purchase of 50 Notes. The
Notes shall bear interest at a rate of 10% per annum payable quarterly
in arrears, and shall entitle the holders thereof to a further pro-rata
payment representing an aggregate of 2% 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 US$1,100 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 (a "Warrant Share")
until the date which is five yearsfollowing the Closing Date
(which is expected to be on or about March 15, 2015) at a price of
CAD$0.25 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% of
gross proceeds to eligible finders.
About Standard Tolling Corp.
Through its wholly owned subsidiary, Standard Tolling owns and is
commissioning the 150 TPD custom tolling facility in Huamachuco which
services the legal small mining communities of northern Peru. Under the
progressive new formalization mandate, the Peruvian government has
enacted legislation to curtail illegal mining by requiring all toll
processing operations to purchase only compliant ores. This has created
significant opportunity for well run, well funded operators to gain
market share as older poorly capitalized players with poor technology
are phased out.
ON BEHALF OF THE BOARD
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“Len Clough”
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Mr. Len Clough, Chairman, President, CEO and Director
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For further information please contact:
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Tel: 866-222-5820 ext 101 for John Martin
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Email: info@standardtolling.com |
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Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain statements that may be deemed
“forward-looking” statements. Forward looking statements are statements
that are not historical facts and are generally, but not always,
identified by the words “expects”, “plans”, “anticipates”, “believes”,
“intends”, “estimates”, “projects”, “potential” and similar expressions,
or that events or conditions “will”, “would”, “may”, “could” or “should”
occur and include, without limitation, statements regarding the
Company’s plans with respect to statements about the Company’s ability
to fund and execute the proven ore processing business model outlined in
this news release. Although Standard Tolling believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance
and actual results may differ materially from those in forward looking
statements. Forward looking statements are based on the beliefs,
estimates and opinions of the Company’s management on the date the
statements are made. Except as required by law, the Company undertakes
no obligation to update these forward-looking statements in the event
that management’s beliefs, estimates or opinions, or other factors,
should change.
Contacts:
Standard Tolling Corp.
John Martin, 866-222-5820 ext 101
info@standardtolling.com
Source: Standard Tolling Corp.
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