WHITE ROCK, British Columbia--(BUSINESS WIRE)--Standard Tolling Corp. (TSX-V: TON, Frankfurt: GA0, “Standard Tolling” or the “Company”) announces a non-brokered private placement of units to raise gross proceeds of up to US$2,250,000 (the “Financing”). The net proceeds of the Financing will be segregated and used to fund and maintain a minimum of two months inventory ore purchases and a US$250,000 installation of carbon stripping on the toll milling plant, located in Huamachuco, Peru. Construction and upgrades will continue after the Financing closes.
Leonard Clough, CEO of the Company stated: “The completion of this financing will mark a major milestone for Standard Tolling. It will provide the Company the necessary capital to commence our ore buying strategy and begin stockpiling. We would like to give special thanks to the agents who are working with us to tailor-make a debt solution that provides us with maximum financial flexibility going forward."
Each unit (a “Unit”) of the Financing will comprise one ore purchase note of the Company priced at US$1,000 (a “Note”) and 500 share purchase warrants (a “Warrant”) subject to a minimum purchase of 50 Notes. The Notes shall bear interest at a rate of 10% per annum payable quarterly in arrears, and shall entitle the holders thereof to a further pro-rata payment representing an aggregate of 2% of net revenues from the Company’s toll processing facility in Peru upon the commencement of commercial production. The Notes will mature three years from the date of issue. The Company will have the right (upon 90 days prior written notice to the affected holder) to redeem Notes in part or in full at a price of US$1,100 per each redeemed Note plus payment of all accrued amounts due in respect of the redeemed Notes. The holders of the Notes shall be granted certain security in respect of the Company’s ore purchases. In addition, the purchasers of the Notes shall be granted pre-emptive rights during the time they hold the Notes to participate in any future debt securities of the Company where the principal purpose of financing the purchase of ore.
Each whole Warrant will entitle the holder to acquire one additional common share in the capital of the Company (a "Warrant Share") until the date which is five years following the Closing Date (which is expected to be on or about March 15, 2015) at a price of CAD$0.25 per Warrant Share.
The Financing is subject to compliance with applicable securities laws and to receipt of regulatory approval. The Company may pay up to 10% of gross proceeds to eligible finders.
About Standard Tolling Corp.
Through its wholly owned subsidiary, Standard Tolling owns and is commissioning the 150 TPD custom tolling facility in Huamachuco which services the legal small mining communities of northern Peru. Under the progressive new formalization mandate, the Peruvian government has enacted legislation to curtail illegal mining by requiring all toll processing operations to purchase only compliant ores. This has created significant opportunity for well run, well funded operators to gain market share as older poorly capitalized players with poor technology are phased out.
|ON BEHALF OF THE BOARD|
|Mr. Len Clough, Chairman, President, CEO and Director|
|For further information please contact:|
|Tel: 866-222-5820 ext 101 for John Martin|
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.
This news release contains certain statements that may be deemed “forward-looking” statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur and include, without limitation, statements regarding the Company’s plans with respect to statements about the Company’s ability to fund and execute the proven ore processing business model outlined in this news release. Although Standard Tolling believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.