Inca One Completes Acquisition of Gold Ore Processing Plant in Peru and announces Convertible Debenture Private Placement
Vancouver, B.C., June 21, 2013– INCA ONE RESOURCES CORP. (TSX‐V:IO) (“Inca One”) is pleased to announce that, further to its news release of June 6, 2013, its wholly owned Peruvian subsidiary, Chala One S.A., has finalized the purchase of a gold milling facility located in Chala Peru (the “Plant”).The Plant will be managed by Inca Ones operating partner Canadian Mining S.A.
- Current capacity of 25 TPD, with low CAPEX to increase to 50 TPD
- In proximity to high concentration of artisanal miners for mill feed
- Located on 21 hectares of land providing ample room for plant expansion
The Plant currently has capacity to process approximately 25 TPD and Inca One intends to begin toll milling high-grade artisanal ore once mill feed is secured. As part of the Plant acquisition due diligence process, management surveyed local artisanal miners and, based on these responses, it believes there will be an abundant supply of high-grade gold ore to process from these local miners.
The Plant is currently processing ore from a nearby concession and recovering 90 – 92% of the gold in oxides.
Inca One intends to immediately increase capacity to 50 TPD by installing a new ball mill, and flotation tanks while applying for commercial permits to incrementally increase capacity up to 350 TPD. The Plant currently sits on 21 hectares of land, and provides ample room for plant expansion.
Inca One believes the Plant purchase is an excellent strategic acquisition that enables cash flow which will further the expansion of its Peruvian operations. It also believes that acquiring an existing gold ore processing facility will save the Company significant capital, time and resources by eliminating the construction and permitting process, which building a new gold processing plant would entail.
“The recent legislation requiring small millers to apply for commercial permits is beginning to create high demand for formalized milling operations similar to the Chala One Plant. The Chala district is a highly concentrated, high-grade artisanal mining district and we believe that it is imperative to secure a strong foothold in the region to ensure our business continues to expand as intended” states Edward Kelly, President and CEO of Inca One.
Convertible Debenture Private Placement
Inca One also announces a Debenture offering in the principal amount of up to $600,000. The debentures will be sold in units of $25,000, have a term of 5 years, and bear interest at the rate of ten percent (10%) per annum, calculated and paid quarterly in arrears. During the first year of the term of the Debentures, at the Unit holders option, 20% of the principal may be converted into common shares of the Issuer at a price per share (the “Conversion Price”) based on the Volume Weighted Average Trading Price (VWATP) of the Issuer’s shares on the TSX Venture Exchange over a period of 10 consecutive trading days prior to conversion.
- If the VWATP is equal to or less than $0.10, the Conversion Price will be $0.10.
- If the VWATP is greater than $0.10 but less than $0.20, the Conversion Price will be the VWATP.
- If the VWATP is equal to or greater than $0.20, the Conversion Price will be $0.20.
The proceeds of the private placement will be used for the exploration and development of the Company’s properties in Peru and to pay for improvements to the Plant. The private placement is subject to the approval of the TSX Venture Exchange.
On behalf of the Board,
INCA ONE RESOURCES CORP.
President & CEO
For More Information Contact:
NEITHER 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.