Inca One Closes First Tranche of Bond Financing
June 03 2014 - 3:58PM
Marketwired
Inca One Closes First Tranche of Bond Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 3, 2014) - INCA
ONE RESOURCES CORP. (TSX-VENTURE:IO) ("Inca One" or the "Company")
is pleased to announce that it has closed the first tranche of its
previously announced bond financing (the "Bond Financing") for
gross proceeds to the Company of $2,700,000.
Pursuant to the Bond Financing, the Company's wholly-owned
subsidiary (the "Subsidiary") issued a three year bond (the
"Bond"), which will bear interest at a rate of 10% per annum,
calculated and payable quarterly in arrears commencing no later
than six months from the date of issue. An additional $2,800,000 in
Bonds will be issued in a subsequent closing of the Bond Financing,
which is expected to be on or around June 30, 2014.
In connection with the Bond Financing and as partial
consideration for the subscription by the purchaser of the Bonds,
the Company and the purchaser have entered into a financing fee
agreement whereby the Company and the Subsidiary will provide the
purchaser a 3.5% financing fee on the net revenues from the
Company's Chala mill in Peru. The term of the financing fee
agreement expires on December 31, 2024 and may be extended for a
maximum of ten years, subject to certain adjustments and a right of
repurchase in favour of the Subsidiary. The Subsidiary's
obligations under the Bond Financing are also secured by a general
security agreement over the Subsidiary's property, which will be
guaranteed by the Company.
A finder's fee of 8% of the gross proceeds of the Bond Financing
will be payable in cash by the Company to SC Strategy Consult AG
(the "Finder"). The Company will also issue to the Finder that
number of finder's warrants equal to 8% of the Bond Proceeds,
divided by the exercise price of $0.15. Closing of the Bond
Financing is subject to final approval of the TSX Venture
Exchange.
The proceeds from the Bond Financing will be used to fund
improvements on the Company's gold mining facility located in
Chala, Peru.
About Inca One Resources Corp.
Inca One is a Canadian-based mineral resource company and ore
processing company with a gold milling facility in Peru, servicing
government-permitted small-scale miners. A highly mineral-rich
country, Peru is one of the world's top producers of gold, silver,
copper and zinc, with substantial production coming from small
scale miners who need government permitted milling facilities to
process their ore (such as the Company's Chala mill).
On behalf of the Board,
INCA ONE RESOURCES CORP.
Edward Kelly, President & CEO
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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 NEWS RELEASE.
Statements regarding the Company which are not historical facts
are "forward-looking statements" that involve risks and
uncertainties. Such information can generally be identified by the
use of forwarding-looking wording such as "may", "expect",
"estimate", "anticipate", "intend", "believe" and "continue" or the
negative thereof or similar variations. Since forward-looking
statements address future events and conditions, by their very
nature, they involve inherent risks and uncertainties. Actual
results in each case could differ materially from those currently
anticipated in such statements due to factors such as: (i)
fluctuation of mineral prices; (ii) a change in market conditions;
and (iii) the fact that the Company has limited operating
experience with its Chala plant and future operational results may
not be accurately predicted based on this limited information to
date. Except as required by law, the Company does not intend to
update any changes to such statements.
This news release deals only with the Company's Chala plant,
which is an industrial project. This presentation does not deal at
all with the Company's sole mineral exploration property, the
Corizona property. Investors should note that no resource has been
established on the Corizona property and all of the material
currently being processed at the Chala plant is received from local
small scale mining operations.
KIN Communications1-866-684-6730 or
1-604-684-6730io@kincommunications.comwww.kincommunications.comInca
One Resources Corp.1 604 568 48771 604 569
1604ir@incaone.comwww.incaone.com
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