Electra Closes Second and Final Tranche of $556,997 Private Placement
Vancouver, British Columbia - Electra Stone Ltd. (TSX Venture: ELT) (“Electra”) is pleased to announce that further to its press release dated June 9, 2016, it has completed the second and final tranche closing of its non-brokered private placement (the “Offering”). The Company will be issuing an additional 2,220,000 common shares at a price of $0.085 per common shares for gross proceeds of $188,700.
The total number of shares issued under the Offering was 6,552,882 for gross proceeds of $556,997.
One director and the President and Chief Executive Officer of the Company participated in the Private Placement as insiders for a total of $158,295. Such participation represents a related-party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”), but is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the subject matter of the transaction does not exceed 25% of the Company’s market capitalization. The Private Placement was approved by all of the independent directors of the Company.
Completion of the Offering will be subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including final approval of the TSX Venture Exchange. All of the securities issued in connection with the Offering are subject to a four (4) month and one (1) day statutory hold period. Total net proceeds from the Offering will be used for general working capital purposes.
About Electra Stone
Electra Stone Ltd. is building a vertically integrated public Nephrite Jade mining, trading & marketing company. Electra is focused on international market growth and trade of Nephrite Jade from British Columbia into Asian markets with a specific focus on China. Electra also continues to operate and improve its Apple Bay alumina-silica quarry on Vancouver Island, which has been in continuous operation since 2003.
For further information and sales enquires on Electra Stone Ltd. please visit www.electrastone.com
Or contact: Tyler Lowes 604-620-8589
On behalf of the Board of Directors,
President and Director.
Forward Looking Statement
This document contains forward-looking statements. Forward –looking statements in this news release include completion of a financing and use of proceeds. Forward information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Factors which may prevent the forward looking statements from coming to fruition include that we may not agree on terms with the investor and we may receive not receive regulatory or shareholder approval. Forward-looking information is provided as of the date hereof and is based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. We assume no responsibility to update, or revise them to reflect new events or circumstances, except as required by law. For a detailed list of risks and uncertainties as it relates to Electra Stone Ltd., please refer to the Company’s 2015 Annual Financials filed with SEDAR.
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 news release.