White Rock, British Columbia (FSCwire) - Standard Tolling Corp. (TSX-V: TON, Frankfurt: GA0, “Standard Tolling” or the “Company”) announces it has closed the fifth and final tranche of a non-brokered private placement of units to raise gross proceeds of US$634,000 (“Debt Offering”). The aggregate amount raised from the Debt Offering is US$2,250,000 including this final balance closed on July 2, 2015.
Leonard Clough, President and CEO comments, “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 TPD. Ore purchases are ramping up and with the recent installation of the onsite 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 below) and 317,000 Debt Warrants (described below) to raise gross proceeds of US$634,000. Each unit (a “Debt Unit”) comprises one ore purchase note of the Company priced at US$1,000 (a “Note”) and 500 non-transferable share purchase warrants (a “Debt Warrant”). 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 may, twelve 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 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 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 (a "DebtWarrant Share") until the date which is three years from the date of issue at a price of CAD$0.25 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 November 3, 2015. The Company paid US$50,720 and issued 79,250 Debt Warrants as finder’s fee in connection with the Debt Units issued.
A total of US$1,750,000 will be segregated from the net proceeds of the total Debt Offering to be used to fund and maintain a minimum of two months inventory ore purchases for the toll milling plant, located in Huamachuco, Peru.
About Standard Tolling Corp.
Standard Tolling is currently constructing a 100 TPD custom gold processing plant in order to service the local mining communities of Northern Peru. The Company will purchase ore from government permitted small-scale miners and formal mining companies permitted under a Certificate of Mining. The Company will then process the ore and sell gold dore. The plant is located within a prolific gold belt with close proximity to Rio Alto’s La Arena gold mine. The Company is well funded and is on track to commence operations by July 2015.
ON BEHALF OF THE BOARD
“Len Clough”
_______________________________________
Mr. Len Clough, Chairman, President, CEO and Director
For further information please contact:
Tel: 866-222-5820 ext 101 for John Martin
Email: info@standardtolling.com
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.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/StandTollJuly22015.pdfSource: Standard Tolling Corp. (TSX Venture:TON, FWB:GA0) http://www.standardtolling.com/s/Home.asp
Maximum News Dissemination by FSCwire. http://www.fscwire.com
Copyright © 2015 Filing Services Canada Inc.