TORONTO, June 18, 2019 /CNW/ - Orefinders Resources Inc.
("Orefinders" or the "Company") (TSX.V: ORX) is pleased to announce
that it is offering to facilitate up to a $1,000,000 financing for Mistango River Resources
Inc. ("Mistango") (MIS:CSE) to develop its Omega project.
"We are attempting to engage Mistango's Board of Directors with
proactive solutions that sees capital invested in the Omega
project. As a 31% owner of Mistango, Orefinders has a vested
interest in adding value to Mistango on a per share basis.
Furthermore, Orefinders is interested in seeing projects on the
Cadillac-Larder Lake break, where
it holds significant interests, get developed. The ability to raise
capital is fundamental to the operation of a junior company and
development of its assets, especially under current market
conditions. We are happy to assist in facilitating this
$1 million financing for Mistango
provided new investors get assurances on how these funds are
deployed," said Stephen Stewart,
Orefinders CEO.
Terms of the financing would be agreeable to both Orefinders and
Mistango. Orefinders is prepared to facilitate this financing at
arms length and would do so at a healthy premium to Mistango's
current share price, historical volume weighted average share price
and in compliance with the Canadian Securities Exchange's minimum
share price requirements. Conditions put forth from Orefinders
are:
- 100% of net proceeds from the financing to go towards the
'Omega Project', with no funds being allocated to Mistango's
'Sackville' or other
projects;
- 100% of net proceeds from the financing are to be spent 'in the
ground' and not to salaries or office rent paid to either
Donald Kasner or Robert Kasner.
- The Omega work program is to be mutually agreed upon by
Mistango, Orefinders and an independent and licenced Professional
Geologist with experience and knowledge of the Cadillac-Larder Lake
Break's geology. This independent geologist would be responsible
for oversight and execution of the Omega work program.
- Board representation on behalf of this new arms length investor
group.
- Mistango's board of directors will declare the Omega project is
free and clear of any encumbrances which are not clearly stated in
Mistango's most recent public filings.
As previously disclosed, Orefinders is also interested
participating pro rata in any financing completed by Mistango.
Orefinders expects the TSXV to grant the necessary waiver for
Orefinders to make an investment in Mistango so that it maintains
its interest at 31%.
About Orefinders Resources Inc.
Orefinders is a Gold exploration and development company focused
in the Kirkland Lake District of
the Abitibi Greenstone Belt. The Company is listed on the Toronto
Venture Exchange under the symbol ORX.
Neither 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. Certain information in this press release may contain
forward-looking statements. This information is based on current
expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. Orefinders' assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to Orefinders. Additional information identifying risks
and uncertainties is contained in filings by Orefinders with
Canadian securities regulators, which filings are available under
Orefinders' profile at www.sedar.com.
SOURCE Orefinders Resources Inc.