(TSX-V: MIN) (Frankfurt:
3XS) (OTCQX: EXMGF)
VANCOUVER, Sept. 5,
2014 /CNW/ - Excelsior Mining Corp. (TSX-V: MIN)
(Frankfurt: 3XS) (OTCQX: EXMGF)
("Excelsior" or the "Company") is pleased to
announce the closing of the first tranche of the US$10 million financing and strategic partnership
agreement with an affiliate of Greenstone Resources L.P.
("Greenstone"), whereby Greenstone has purchased 20,580,000
common shares, equal to approximately 19.9% of the issued and
outstanding common shares of Excelsior, at a price of C$0.34 per common share in return for gross
proceeds of US$6,393,341.64. For
further information please see the Company's previous news release
dated August 13, 2014 – "Excelsior
Announces Strategic Partnership and US$10
M Financing with Greenstone Resources."
In connection with this transaction, Mr.
Michael Haworth will immediately
join the Board of Directors as the first nominee director of
Greenstone.
The second tranche of the private placement shall
require shareholder approval under the rules and policies of the
TSX Venture Exchange as it will result in the creation of a new
"control person". The Company intends to obtain shareholder
approval for the second tranche at its annual and special meeting
of shareholders currently scheduled for September 30, 2014 in Vancouver (the "Meeting"). Assuming
shareholder approval is obtained, the second tranche is scheduled
to close within 15 business days after the Meeting. The
second tranche will see Greenstone purchase US$3,606,658.36 of common shares of Excelsior at
price of C$0.34 per common share. The
exact number of common shares will be determined based on the noon
US$/C$ exchange rate as quoted by the Bank of Canada on the day of the Meeting. This portion
of the transaction remains subject to a number of conditions,
including, without limitation, receipt of all regulatory approvals,
including the approval of the TSX Venture Exchange and the
applicable securities regulatory authorities.
The TSX Venture Exchange has conditionally
approved the closing of the transaction, however it has not yet
completed its review of certain documents. As a result, the closing
has occurred but the proceeds of the first tranche of the private
placement, together with the 20,580,000 common shares subscribed by
Greenstone, were deposited into escrow on closing. The escrowed
funds and common shares will be released to the Company and
Greenstone, respectively, upon the completion of the TSX Venture
Exchange's review of these documents.
The net proceeds of the offering will be used for
the continued development of the company's Gunnison Copper Project
and for working capital and general corporate purposes. Excelsior
will pay a finder's fee equal to $250,000 in accordance with the rules and
policies of the TSX Venture Exchange. The common shares issued to
Greenstone are subject to a statutory four month hold period
expiring on January 6, 2015.
About Greenstone
Greenstone is a private equity fund specialising
in the mining and metals sector. The Greenstone team has over 80
years of experience in the sector covering all aspects of mining
project development. Further details on Greenstone can be
found at www.greenstoneresources.com.
Greenstone is acquiring the securities in the
offering described herein for investment purposes. Depending on
market conditions and other factors, Greenstone may from time to
time acquire and/or dispose of securities of Excelsior or continue
to hold its current position.
About Excelsior
Excelsior is a mineral
exploration and development company that is advancing the Gunnison
Copper Project. The Excelsior management team consists of
experienced professionals with proven track records of advancing
mining projects into production. Further information about
the Gunnison Copper Project can be found in the technical report
filed on SEDAR at www.sedar.com entitled: "Gunnison Copper Project,
NI 43-101 Technical Report, Prefeasibility Study" dated
February 14, 2014.
For more information on Excelsior, please visit
our website at www.excelsiormining.com.
ON BEHALF OF THE EXCELSIOR BOARD
"Mark J. Morabito"
Executive Chairman
Cautionary Note Regarding Forward-Looking
Information
This news release contains "forward-looking
information" concerning anticipated developments and events that
may occur in the future. Forward looking information contained in
this news release includes, but is not limited to, statements with
respect to (i) the timing and closing of the second tranche of the
private placement; (ii) the anticipated use of proceeds of the
private placement; and (iii) the advancement of the Gunnison
Project.
Such forward-looking information can be
identified by the use of word "will". Forward-looking information
contained in this news release is based on certain factors and
assumptions regarding, among other things, the estimation of
mineral resources and mineral reserves, the realization of resource
and reserve estimates, copper and other metal prices, the timing
and amount of future exploration and development expenditures, the
estimation of initial and sustaining capital requirements, the
estimation of labour and operating costs, the availability of
necessary financing and materials to continue to explore and
develop the Gunnison Project in the short and long-term, the
progress of exploration and development activities, the receipt of
necessary regulatory approvals, the completion of the permitting
process, the estimation of insurance coverage, and assumptions with
respect to currency fluctuations, environmental risks, title
disputes or claims, and other similar matters. While the Company
considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect.
Forward looking information involves known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information. Such factors include risks inherent in the exploration
and development of mineral deposits, including risks relating to
changes in project parameters as plans continue to be redefined
including the possibility that mining operations may not commence
at the Gunnison Project, risks relating to variations in mineral
resources and reserves, grade or recovery rates resulting from
current exploration and development activities, risks relating to
the ability to access infrastructure, risks relating to changes in
copper and other commodity prices and the worldwide demand for and
supply of copper and related products, risks related to increased
competition in the market for copper and related products and in
the mining industry generally, risks related to current global
financial conditions, uncertainties inherent in the estimation of
mineral resources, access and supply risks, reliance on key
personnel, operational risks inherent in the conduct of mining
activities, including the risk of accidents, labour disputes,
increases in capital and operating costs and the risk of delays or
increased costs that might be encountered during the development
process, regulatory risks, including risks relating to the
acquisition of the necessary licenses and permits, financing,
capitalization and liquidity risks, including the risk that the
financing necessary to fund the exploration and development
activities at the Gunnison Project may not be available on
satisfactory terms, or at all, risks related to disputes concerning
property titles and interest, environmental risks and the
additional risks identified in the "Risk Factors" section of the
Company's reports and filings with applicable Canadian securities
regulators.
Although the Company has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking information, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on
forward-looking information. The forward-looking information is
made as of the date of this news release. Except as required by
applicable securities laws, the Company does not undertake any
obligation to publicly update or revise any forward-looking
information.
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, and no securities
regulatory authority has either approved or disapproved of the
contents of this release.
SOURCE Excelsior Mining Corp.