VANCOUVER, Oct. 3, 2016 /CNW/ - INCA ONE GOLD
CORP. (TSX.V: IO) ("Inca One" or
the "Company") is pleased to report it has
closed the second and final tranche of its previously announced
(July 8, 2016) non-brokered private
placement (the "Private Placement") for gross proceeds of
CAD$3.1 million by the issuance of
12.4 million units (the "Units") at a subscription price of
CAD$0.25 per Unit. Each Unit is
comprised of one common share (a "Share") and one full,
transferable common share purchase warrant (a
"Warrant"). Each Warrant will be exercisable to
purchase an additional common share of the Issuer at an exercise
price of CAD$0.40 for a period of 36
months from the closing date and will feature an acceleration
clause triggering the exercise of the warrant upon select share
price metrics being achieved. Together with the first tranche
closing previously announced on August 26,
2016, the Company has raised in aggregate gross proceeds of
$6.3 million with the issuance 25.4
million units, an oversubscription of $2.3
million dollars.
Insiders of the Company have subscribed for 3.7 million Units
under the Private Placement. The issuance of Units to
insiders pursuant to the Private Placement (the "Insider
Participation") will be considered to be a related party
transaction within the meaning of TSX Venture Exchange (the
"TSXV") Policy 5.9 and Multilateral Instrument 61-101
("MI 61-101"). The Company intends to rely on the exemptions
from the valuation and minority shareholder approval requirements
of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI
61-101 in respect of any Insider Participation.
Cash finder's fees of 8% of the gross proceeds were paid on a
portion of the Private Placement. The Company will also issue
8% finders warrants to eligible finders in connection with this
placement. The net proceeds from the Private Placement will
be used for purchases of mineral, inventory supplies and materials,
select debt repayments, and for general working capital purposes,
as applicable. All securities issued pursuant to the Private
Placement are subject to a statutory hold period of four months
plus one day from the date of issuance, in accordance with
applicable securities legislation.
The securities described herein have not been registered under
the U.S. Securities Act of 1933, as amended, and will not be
offered or sold in the United
States unless registered under the Act or unless an
exemption from registration is available.
Edward Kelly, President and CEO
of Inca One stated, "I am extremely pleased to close the
oversubscribed private placement. Our ability to secure
funding to recapitalize our mineral purchasing is essential to
continue our ramp up of operations at Chala One SAC and drive
revenues on a sustained basis. Together with the
restructuring of our debt and shares, completing this financing was
the final piece culminating months of effort from our management
team."
About Inca One
Inca One is a Canadian-based mineral processing company with a
gold milling facility in Peru,
servicing government-permitted, small-scale miners. As part of the
terms of the original purchase agreement for the Chala,
Peru processing facility, Inca One
has an agreement between its wholly owned subsidiary, Chala One
SAC, and the seller and initial permit applicant, to operate under
the umbrella of formalization until the successful completion of
all the environmental and operating permits. Peru, a highly mineral-rich country, 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 mineral
(such as the Company's Chala
Plant).
On behalf of the Board,
Edward Kelly,
President and CEO
INCA ONE GOLD CORP.
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. Inca One believes
the expectations reflected in those forward-looking statements are
reasonable but no assurance can be given that these expectations
will prove to be correct and such forward-looking statements
included herein should not be unduly relied upon.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state in which such offer, solicitation, or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state.
SOURCE Inca One Gold Corp.