Mr. Doug Fulcher reports
ONE WORLD MINERALS INC. ANNOUNCES PRIVATE PLACEMENT
One World Minerals Inc.'s previous non-brokered private placement, announced on June 23, 2017, will be replaced with a non-brokered private placement of up to six million units at a price of 25 cents per unit for gross proceeds of up to $1.5-million.
Each unit will consist of one common share in the capital of the company and one non-transferable common share purchase warrant. Each warrant will entitle the holder thereof to acquire one additional share at a price of 50 cents per warrant share for a period of 24 months from the closing of the offering.
There is no minimum number of units or minimum aggregate proceeds required to close the offering, and the company may, at its discretion, elect to close the offering in one or more closings. Management anticipates that the company will allocate the net proceeds of the offering as follows: Salar del Diablo property (formerly Rico Litio) predrilling program, $465,000; Salar del Diablo property drilling program, $480,000; regional exploration, $150,000; and the balance for working capital.
The company may pay a finder's fee on the offering. Closing of the offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals. All securities issued in connection with the offering will be subject to a statutory hold period of four months plus a day from the closing of the offering in accordance with applicable securities legislation.
The June 23, 2017, non-brokered private placement was previous non-brokered private placement of up to five million units at a price of 30 cents per unit for gross proceeds of up to $1.5-million. Each unit consisted of one common share in the capital of the company and one non-transferable common share purchase warrant. Each warrant entitled the holder thereof to acquire one additional share at a price of 50 cents per warrant share for a period of 24 months from the closing of the offering.
A portion or all of the offering may be completed pursuant to Multilateral CSA Notice 45-313, Prospectus Exemption for Distributions to Existing Security Holders, and the corresponding blanket orders and rules implementing CSA 45-313 in the participating jurisdictions in respect thereof. As at the date hereof, the existing security holder exemption is available in each of the provinces of Canada, with the exception of Newfoundland and Labrador.
Subject to applicable securities laws, the company will permit each person or company who, as of June 23, 2017 (being the record date set by the company pursuant to CSA 45-313), holds common shares as of that date to subscribe for the units that will be distributed pursuant to the offering, provided that the existing security holder exemption is available to such person or company. Qualifying shareholders who wish to participate in the offering should contact the company. In the event that aggregate subscriptions for units under the offering exceed the maximum number of securities to be distributed, then units will be sold to qualifying subscribers on a pro rata basis based on the number of units subscribed for. Insiders may participate in the offering.
In addition to the existing security holder exemption, a portion or all of the offering may be completed pursuant to Multilateral CSA Notice 45-318, Prospectus Exemption for Certain Distributions through an Investment Dealer, and the corresponding blanket orders and rule implementing CSA 45-318 in the participating jurisdictions in respect thereof. As at the date hereof, the investment dealer exemption is available in each of Alberta, British Columbia, Saskatchewan, Manitoba and New Brunswick. Pursuant to CSA 45-318, each subscriber relying on the investment dealer exemption must obtain advice regarding the suitability of the investment from a registered investment dealer.
There is no material fact or material change of the company that has not been disclosed.
In addition to conducting the offering pursuant to the existing security holder exemption and the investment dealer exemption, the offering will also be conducted pursuant to other available prospectus exemptions.
The company has granted incentive stock options to a consultant of the company to purchase up to 400,000 common shares of the company at a price of 25 cents per common share. The stock purchase options are exercisable on or before Feb. 28, 2019.
About One World Minerals Inc.
One World Minerals is an exploration and development company which trades on the Canadian Securities Exchange with the symbol OWM.
On July 28, 2017, the company closed its previously announced option and joint venture agreement up to a 90-per-cent interest in the Salar del Diablo property, located in the state of California Baja North, Mexico.
The company also has an option to purchase a 100-per-cent interest in the Mogollon property, which is a high-grade underground silver and gold property in New Mexico.
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