Electra Closes $850,000 Private Placement
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VANCOUVER, BRITISH COLUMBIA, June 10, 2015 (TSXv:ELT) (FSE:A14NCM) (the “Company” or “Electra”) - Further to Electra’s press release issued May 4, 2015 the Company is pleased to announce the closing of a private placement (the “Private Placement”) of $850,000 by the issuance of convertible debenture(s).
Of the $850,000 closed, $350,000 of the convertible loan was placed with Costigan Capital Corp. a private consulting company controlled by John A Costigan the President and CEO of Electra Stone Ltd. The sum of $450,000 was placed with Metath Investment Co. Ltd., a private company controlled by Mr. Haijan Liu. Mr. Liu undertakes not to exercise any convertible securities of the Issuer which would result in holdings of 10% or more of the Company’s common shares until the Form 2A Personal Information Form has been approved by the TSX Venture Exchange (TSX-V). In addition the warrants issuable upon conversion of the debentures will include restrictive language which would prohibit the exercise of warrants that would result in the holder owning over 19.9% of the common shares of the Company without first having received shareholder and TSX-V approval.
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 Electra. 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 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.