Inca One Receives Total Commitments Of US$1,500,000 In Debenture Financing
February 26, 2015
Vancouver, BC – February 26, 2015- INCA ONE GOLD CORP. (TSX-V:IO) ("Inca One" or the "Company") wishes to announce that further to its news release dated February 18, 2015 it has now received total commitments of US$1,500,000 in respect of its non-brokered private placement of units (the “Debt Financing”), which is US$1,000,000 above the initial US$500,000 previously announced.
Closing of the first tranche of US$1,000,000, including the US$500,000 previously announced, is expected to occur shortly. Closing of a second tranche of US$500,000 is expected mid-March. Closing of the tranches is subject to approval of the TSX Venture Exchange.
The net proceeds of the Debt Financing will provide the Company with additional funds for both future working capital and accretive expansion opportunities.
The Debt Financing will be for up to 60 units (the “Units") with each Unit comprising one debenture in the principal amount of US$25,000, and 25,0000 non-transferable warrants to purchase up to 25,000 shares of the Company’s common stock, exercisable for up to 12 months from closing at an exercise price of CAD$0.25. The holders of the debentures will be entitled to receive interest at the rate of 14% per annum, calculated and paid quarterly in arrears. The term of the debentures is 12 months.
A finder's fee of 8% of the gross proceeds of the Debt Financing will be payable in cash by the Company to certain finders in accordance with exchange policies (the “Finders"). The Company will also issue to the Finders that number of finder's warrants equal to 8% of the proceeds of the Debt Financing, divided by the exercise price of CAD$0.25.
About Inca One
Inca One is a Canadian-based ore processing company with a gold milling facility in Peru, servicing government-permitted small-scale miners. A highly mineral-rich country, Peru is one of the world's top producers of gold, silver, copper and zinc, with substantial production coming from small scale miners who need government permitted milling facilities to process their ore (such as the Company's Chala One plant).
On behalf of the Board,
President & CEO
INCA ONE GOLD CORP.
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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.
Statements regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) fluctuation of mineral prices; (ii) a change in market conditions; and (iii) the fact that the Company has limited operating experience with its Chala plant and future operational results may not be accurately predicted based on this limited information to date. Except as required by law, the Company does not intend to update any changes to such statements.
This news release deals only with the Company's Chala plant, which is an industrial project. This presentation does not deal at all with the Company's sole mineral exploration property, the Corizona property. Investors should note that no resource has been established on the Corizona property and all of the material currently being processed at the Chala plant is received from local small-scale mining operations.