RETRANSMISSION: Inca One Announces $5,500,000 in Debt Financing, Secures First Right of Refusal for Additional $15,000,000
May 21 2014 - 9:00AM
Marketwired
RETRANSMISSION: Inca One Announces $5,500,000 in Debt Financing,
Secures First Right of Refusal for Additional $15,000,000
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 21, 2014) - INCA
ONE RESOURCES CORP. (TSX VENTURE:IO) ("Inca One" or the "Company")
is pleased to announce a non-brokered private placement (the "Bond
Financing") of bonds (the "Bonds") in the amount of $5,500,000.
In addition, the subscriber of Financings has the first right of
refusal to purchase up to $15,000,000 in future debt or equity
financings of the Company.
Highlights of the Financing include the following:
- Funds to increase throughput at Chala by 400%
- Completion expected by Q4 2014
- Secures first right for additional $15,000,000 in equity or
debt financing
The net proceeds of the Financing will be used to expand milling
operations and increase throughput at the Chala mill to 100 TPD by
Q4 2014, an increase of 400%. The funding covers inventory ore
purchase, plant upgrades, sustaining capital plus general and
administrative expenses. Construction and upgrades will continue
after the Financing close.
"This Financing enables Inca One to make the necessary mill
improvements to rapidly increase production and cash flow, with
minimal dilution to our shareholders and very manageable
repayment," said Edward Kelly, President and CEO of the Company.
"We are very pleased to have sourced financial partners that share
in our vision of growth and opportunity in Peru. We are thankful
for the support of the Peruvian Government, and will continue to
work closely with them and lead by example during this
formalization process of small-scale mining and milling
operations."
Bond Financing
The Company's wholly-owned subsidiary, (the "Subsidiary") will
issue a three year bond (the "Bond") in the amount of $5,500,000 in
connection with the Bond Financing. The Bond 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.
The Bonds will be issued in two tranches, with $2,700,000 issuable
at the initial closing and $2,800,000 issuable at the subsequent
closing, which is expected to close on 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 will enter 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 will also be 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 the execution of
definitive transaction documents and the approval of the TSX
Venture Exchange (the "Exchange").
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
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
Communicationsio@kincommunications.com1-866-684-67301-604-684-6730www.kincommunications.com
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