In connection with the exercise of the option, the Company issued 6,283,333 common shares (the "Shares") to Americas Bullion Royalty Corp. (AMB.TO) ("AMB") on December 11, 2013, representing the final payment required to exercise the option. For further information, please see the Company’s news releases of December 10, 2010, January 21, 2013 and March 18, 2013.
Private Placement
Further to the Company’s press release of October 25, 2013, the Company also announces that on December 12, 2013, it closed the first tranche of a non-brokered private placement of 12,300,000 Shares at a price of $0.05 per Share to raise gross proceeds of $615,000. On closing of the first tranche, 7,719,869 Shares were issued, of which 5,419,869 Shares were purchased by AMB.
The second tranche of 4,580,131 Shares, which were also subscribed by AMB under the private placement, will be issued upon the Company obtaining disinterested shareholder approval. In connection with the closing of the private placement, the Company paid finders’ fees of $2,500. The proceeds from the private placement will be used for exploration of the Company’s properties and for general corporate purposes.
As a result of these recently closed transactions, AMB now holds directly and indirectly 25,476,535 Shares, or approximately 37.51% of the Company’s issued and outstanding shares, prior to closing of the second tranche.
