Electra Stone Ltd. Announces Proposed $500,000 Non-Brokered Private Placement

November 25, 2016 – Electra Stone Ltd. (TSXv: ELT) (FSE: 44E1) (“Electra” or the “Company”) announces that it proposes to raise up to $500,000 through a non-brokered private placement (the “Placement”) of up to 12,500,000 units (“Units”) at a price of $0.04 per Unit. This Placement is being made pursuant to the grant of a "discretionary waiver" of the TSX Venture Exchange's ("TSXV") minimum $0.05 pricing requirement (the "Waiver") and it is subject to acceptance by the TSXV. Each Unit is comprised of one common share and one share purchase warrant exercisable into one additional common share at $0.05 per share for a period of 12 months from the issue date.

 

All the securities will be subject to a four-month hold period from the date of closing. The private placement is subject to the approval of the TSX Venture Exchange. No finders fees are payable in connection with this private placement. Certain insiders of the Company may participate in the Placement.

 

Proceeds of the private placement are to be utilised for working capital and corporate purposes related to the Company’s November 17th announcement of establishing a joint venture to develop and expand the BC nephrite jade industry. Approximately $300,000 CAD will be allocated to the initial costs associated with the purchase, shipment, housing, manufacture and sale of Nephrite Jade and finished Nephrite Jade products. $100,000 will be allocated for general corporate purposes including regulatory and professional fees of $30,000; salaries and fees to related parties $60,000. $100,000 will remain un-allocated for general capital purposes.

 

In addition to other prospectus exemptions commonly relied on in private placements, the Units will be available for purchase by existing shareholders of the Company who, as of the close of business on November 25, 2016, held common shares of the Company (and who continue to hold such common shares as of the closing date), pursuant to the prospectus exemption set out in BC Instrument 45-534 - Exemption from prospectus requirement for certain trades to existing security holders and in similar instruments in other jurisdictions in Canada (the “Existing Shareholder Exemption”). The Existing Shareholder Exemption limits a shareholder to a maximum investment of CAD$15,000 in a 12-month period unless the shareholder has obtained advice regarding the suitability of the investment and, if the shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction. If the Company receives subscriptions from investors relying on the Existing Shareholder Exemption exceed $500,000, then the Company may adjust the subscriptions received on a pro-rata basis.

On Behalf of the Board of Directors,

ELECTRA STONE LTD.

“John Costigan”

John Costigan
President

Tel: 604.620.8589
info@electrastone.com

Neither TSX Venture Exchange nor it 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.

Forward-Looking Statements

Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. It is important to note that actual outcomes and the Company’s actual results could differ materially from those in such forward-looking statements. Forward looking statements in this news release include, but are not limited to the Company being able to raise the $500,000 and to meet its ongoing cash flow requirements. Risks and uncertainties include economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Factors that could cause actual results to differ materially include that we are unable to raise sufficient interest in the financing; that we may not be able to raise sufficient funds to complete our intended exploration and development; and that despite encouraging data there may be no commercially exploitable mineralization on our properties. Except as required by law, we do not undertake to update these forward looking statements.

 

Tyler Lowes, Manager | Corporate Development, Electra Stone Ltd., Telephone (604)-620-8589