Plains Creek announces proposed private placement of senior secured
convertible debentures
VANCOUVER,
Jan. 7, 2013 /CNW/ - Plains Creek
Phosphate Corporation ("Plains Creek", the "Company")
(TSX‐V: PCP) is pleased to announce that it is planning a
non-brokered private placement (the "Private Placement") of
senior secured convertible debentures (the "Debentures") of
the Company to raise aggregate gross proceeds of up to $3,000,000.
As currently proposed, the Debentures will have
a face value of $1,000, each bearing
interest of 10% per annum, fully secured by the assets of the
Company. The Debentures will all rank pari passu in priority
among each of them and the principal amount and all accrued and
unpaid interest shall be due and payable in full on or before
March 31, 2014. Every $1,000 principal amount of the Debentures will be
convertible at any time, at the holder's option: (a) initially,
into 10,000 common shares of the Company at a price of $0.10 per share; and (b) in the event of a share
consolidation by the Company, at a conversion price per share equal
to the greater of (i) the current market price of $0.01 per share times the consolidation ratio,
and (ii) the minimum allowable conversion price of $0.10 per share, in accordance with the policies
of the TSX Venture Exchange (the "Exchange"). Security for
the Debentures shall become enforceable upon the occurrence of
certain events of default, which will include, among other things,
if the Company fails to pay the principal amount of the Debentures
when they become due and payable.
The net proceeds of the Private Placement will
be for property payments on the Company's Farim Phosphate mineral
property and for related in-country expenses in Guinea-Bissau and for additional working
capital.
The Private Placement is subject to approval by
the Exchange.
About Plains Creek Phosphate
Corporation
Plains Creek Phosphate Corporation is a Canadian
mining exploration and development company focused on advancing its
Farim Phosphate Project in Guinea‐Bissau, West Africa through its subsidiary, GB
Minerals AG.
The Company's shares are listed on the TSX
Venture Exchange under the trading symbol "PCP". For additional
information, please visit us at www.plainscreek.com.
ON BEHALF OF THE BOARD
"Carson Phillips"
Carson Phillips
Vice‐President, Corporate Development and Director
Cautionary Statement
Statements in this release may be viewed as
forward‐looking statements. Such statements involve risks and
uncertainties that could cause actual results to differ materially
from those projected. There are no assurances the Company can
fulfill such forward‐statements and the Company undertakes no
obligation to update statements. Such forward looking statements
are only predictions; actual events or results may differ
materially as a result of risks facing the Company, some of which
are beyond the Company's control.
The reader should be cautioned that there are
risks that could affect the potential development of the Farim
Phosphate Project's (the "Project") mineral resources, which
include: the political instability in Africa and Guinea‐Bissau in particular, which
is where the Project is located; and that additional financing will
be required to ultimately develop the Project and the ability to
obtain such financing on favorable terms will be affected by
prevailing market conditions. A more detailed discussion of such
risks are outlined in the Company's Management's Discussion &
Analysis and the Reports, all of which are filed under the
Company's profile on SEDAR at www.sedar.com.
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.
SOURCE Plains Creek Phosphate Corp.