NEW YORK--(BUSINESS WIRE)--April 10, 2014 - GNCC Capital, Inc. (OTC:GNCP) updated on April 9, 2014 in a Press Release and in respect of the:
EXTENSION OF AND ADDITIONAL CREDIT FACILITIES & THE USE OF PATENTED RADAR SCANNING TECHNOLOGY:-
- The Company’s intention to utilize the services of a specialist radar geological scanning service provider in early May of 2014, initially on its “White Hills, Burnt Well, Kit Carson and Clara” Exploration properties; it is estimated to cost an initial amount of circa $500,000 in respect of those initial properties. This technology will be expanded in due course for use on all of our exploration properties and where identified, will result in the need for reduced drilling for core samples as well as an expedited timeline to getting better reserve and resource estimates.
- As the Company has significantly increased its exploration expenditure and intends to continue to do so, Management believes that significant additional credit facilities are required by the Company for the remainder of this fiscal year.
- Due to the Company embarking on a drive to expedite and define the potential values of the properties under license, our spend rate will increase and therefore the Company is expecting to announce the raising of an additional amount of $1 million in cash for the very short term. It is now highly likely that the total funds being sought by the Company, in the very near term, will be significantly higher.
Following receipt of a number of e mails from concerned stockholders, following this Press Release, Company Management wishes to clarify this and very simply:
- Monies raised by the Company to fund these endeavors will be used to pay cash to meet these costs.
- No shares of restricted Common Stock are being issued by the Company to obtain this additional funding.
- Any additional Long Term Convertible Notes issued to third parties in respect of this actual cash raised by the Company, will be long term. Regulation 144 prohibits these Convertible Loan Notes from being converted into “free trading” shares of the Company’s Common Stock and for a period of at least one year.
- Any potential dilution caused by any conversion of these new Convertible Loan Notes is a year away and it is expected that the results and benefits obtained by the expenditure of this cash on radar scanning and related expenses, in the immediate term, will far outweigh the potential threat of additional shares of Common Stock entering the “free float” in over a year.
It is very clear to Company Management that they need to justify and set out their rationale for this cash expenditure; and to that end, we reiterate:
To this end, Ted Blom has undertaken in the next few days and not weeks, to prepare and to publish a Management Discussion Paper on the rationale and uses of this particular radar scanning technology and its uses for identifying geological anomalies and potential ore body delineation. This will highlight the benefits of using “Cutting Edge Mining Technologies” and as to why the Company will be attempting to deploy this technology on our properties under license.
Full details will be published at such time as each of these various arrangements are consummated.
About GNCC Capital, Inc.:
GNCC Capital, Inc. is primarily a Gold Exploration Company, with a secondary focus on Silver Exploration. The initial exploration properties are located in Arizona and consist of “White Hills, Esther Basin, Burnt Well, Clara, Kit Carson, Silverfields and Potts Mountain". The Company intends to create significant value for its initial portfolio of properties through continued exploration, joint ventures, and through the acquisition of additional Gold and Silver Exploration assets.
This press release may contain forward-looking statements. The words "believe," "expect," "should," "intend," "estimate," "projects," variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company's current expectations and are subject to a number of risks, uncertainties and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company's filings, which are on file with the OTC Markets Group.