ENP Newswire -
Release date- 11072014 -
Pursuant to the securities purchase agreement (the 'Agreement') dated
Pursuant to the requirements of the
Pinetree also holds 3.5 million common share purchase warrants of the Company. Accordingly, on a fully diluted basis (that is, assuming conversion of all outstanding warrants and other convertible securities of the Company) Pinetree, together with its joint actor, would hold approximately 23.27% common shares of the Company.
The net proceeds from the private placement will be used at the Company's Paso Yobai gold project and for general working capital purposes.
The Financing constitutes a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ('MI 61-101') and TSXV Policy 5.9. The Company is relying on the exemptions from the formal valuation and minority shareholder approval requirements contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of securities being issued to Pinetree nor the consideration being paid by Pinetree exceeded 25% of the Company's market capitalization on the date of the Agreement.
The Company did not file a material change report 21 days prior to the closing of the Financing as the transaction was announced and closed in less than that time period.
About the Company
The Company holds a 100% interest in an on-site concentrator plant (mill) at the fully permitted
The Company holds 100% of the adjacent Paso Yobai X-Mile Trend exploration concessions, the present exploration focus. The Company also holds 100% interests in highly prospective diamond, REE, niobium and green-fields gold projects in
President and CEO
Tel: (1-416) 902-8558
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