Pele Mountain Announces Closing of First Tranche of Private Placement Offering
May 01 2014 - 4:47PM
Marketwired
Pele Mountain Announces Closing of First Tranche of Private
Placement Offering
TORONTO, ONTARIO--(Marketwired - May 1, 2014) - Pele Mountain
Resources Inc. (TSX-VENTURE:GEM)(OTCQX:GOLDF) ("Pele" or the
"Company") is pleased to announce that it has closed the first
tranche of a non-brokered private placement offering (the
"Offering") comprised of 2,334,838 flow-through units (the "FT
Units") at a purchase price of $0.07 per FT Unit for aggregate
gross proceeds of $163,438.66 and 4,559,562 units (the "Units") at
a price of $0.06 each for aggregate gross proceeds of $273,573.72.
The total amount raised under the first tranche of the Offering was
$437,012.38. Each FT Unit consists of one common share and one-half
of one common share purchase warrant (a "FT Warrant"), with each
whole FT Warrant exercisable to acquire one common share of Pele at
$0.12 until May 1, 2015. Each Unit consists of one common share and
one-half of one common share purchase warrant (a "Warrant"), with
each Warrant exercisable to acquire one common share of Pele at
$0.12 until November 1, 2015.
In connection with the Offering, the Company paid eligible
persons (the "Finders") a cash fee of 7% of the gross proceeds
raised through each Finder under the Offering and also issued
compensation warrants equal to 7% of the total number of Units or
FT Units ("Compensation Warrants") issued through each Finder under
the Offering. Each Compensation Warrant entitles the holder upon
exercise to acquire one common share of Pele at $0.07 until May 1,
2015. On closing, the Company paid $7,245 in cash fees to the
Finders and issued 117,250 Compensation Warrants to the
Finders.
Certain directors and officers (the "Purchasing Directors"),
purchased an aggregate of 28.7% of the securities issued pursuant
to the Offering and declared a conflict and recused themselves from
voting on the Offering. There was no materially contrary view or
abstention by any director approving the Offering.
Pursuant to Multilateral Instrument 61-101 - Protection of
Minority Security Holders in Special Transactions ("MI
61-101"), the purchase by the Purchasing Directors was a "related
party transaction" but the Corporation was exempt from the
requirements to obtain a formal valuation or minority shareholder
approval in connection with the Offering.
The securities issued pursuant to the Offering will all be
subject to a four (4) month statutory hold period commencing from
the date of issuance. The Offering is subject to TSX Venture
Exchange acceptance of requisite regulatory filings.
All proceeds raised from the sale of FT Units will be used by
Pele to finance qualified Canadian exploration expenditures on its
Canadian resource properties and all proceeds raised from the sale
of Units will be used by Pele for general working capital
purposes.
About Pele
Pele is focused on the sustainable development of its
100-percent owned Eco Ridge Mine project, located in Elliot Lake,
Ontario, the only Canadian mining camp to ever achieve commercial
rare earth production. With well-understood geology and mineralogy,
excellent regional infrastructure, and strong local support, Eco
Ridge is an ideal location for the development of a safe, secure,
and reliable supply of critical rare earths and uranium. Pele also
owns strategic mining claims containing high grade rare earth
mineralization at Mountain Pass, California, just 1800 metres from
Molycorp's open pit mine. Pele's shares are listed on the TSX
Venture Exchange under the symbol "GEM" and on the OTCQX under the
symbol "GOLDF".
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 release.
Pele Mountain Resources Inc.Al ShefskyPresident(800)
315-7353www.pelemountain.com