Electra announces Private Placement of up to $850,000 of Convertible Debenture(s)
This news Release is intended for distribution in Canada only and is not authorized for distribution to United States Newswire Services for dissemination in the United State.
VANCOUVER, May 4th, 2015 (TSXv:ELT) (FSE:A14NCM) (the “Company” or “Electra”) is pleased to announce, subject to TSX Venture Exchange (TSXV) and if required shareholder approval, a private placement of up to $850,000. by the issuance of convertible debenture(s).
Of the $850,000 proposed, the Company has entered into a $350,000 convertible loan agreement with Costigan Capital Corp. a private consulting company controlled by John A Costigan the President and CEO of Electra Stone Ltd.
John A Costigan, President and director of Electra Stone Ltd, (TSXv:ELT) comments:
“I believe that the new direction of Electra (as exemplified by it’s entry into the Jade sector) will not only be the fulcrum for increased profitability but will allow Electra to execute on a myriad of jade and industrial mineral opportunities. This loan agreement clearly demonstrates my confidence in the financial soundness of this new strategic direction.”
Description of Loan Agreement
This is an unsecured 2 year Convertible Loan bearing 12 % interest per annum. The lender has an option to convert up to 100% of the principal amount of the loan outstanding plus interest compounded into units of ELT. The conversion price is $0.05 during the first year and thereafter the greater of $0.10 and the market price as defined by TSXV policies. Units are described as one share and one warrant, with each warrant being exercisable to purchase one share any time during the 24 month period from the issue date.
The proceeds will be utilized for equipment purchases, jade project development, ongoing operations and corporate development.
About Costigan Capital Corporation
Costigan Capital Corporation is a private Consulting Corporation headquartered in Vancouver BC.
The Company has accepted the resignations of Johan Shearer as a Director of the Company and from Jody Bellefleur as Chief Financial Officer. Management would like to thank Jo Shearer for his dedication and service to ELT for more than a decade and Jody Bellefleur for her tireless devotion during the reorganization and transition of the Corporation.
About Electra Stone Ltd.
Electra Stone Ltd. (the “Company”) (formerly Electra Gold Ltd.) is a mining company, specializing in the development of and exploration for industrial minerals and dimensional stone. The Company is in the process of mining the Apple Bay mineral properties located on Vancouver Island near Port Hardy, British Columbia. The mineral claims are located on crown land within the traditional territory of Quatsino First Nation Band. The Company has also recently entered into the dimensional stone sector with a current focus on Nephrite Jade exploration in British Columbia. The Company currently trades on the TSX Venture Exchange under the symbol ELT.
For further information or interests on British Columbia Jade or Electra Stone please contact Tyler Lowes at email@example.com or call 604-681-1568.
On behalf of the Board of Directors
President and Director
This press release contains forward-looking information or forward-looking statements (collectively “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”, “proposed”, “postulate” and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Company’s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Company’s profile on SEDAR at www.sedar.com.