VANCOUVER, March 29, 2018 /CNW/ - INCA ONE GOLD
CORP. (TSXV: IO, Frankfurt: SU9.F, SSEV: IOCL)
("Inca One" or the "Company") is pleased to
announce it has agreed to terms with Emerging Manager Platform (2)
Ltd. – Income Bonds Fund ("EMP") to amend the terms of its
existing $2,362,500 Secured Debenture
("Debt") and issue shares for the settlement of $762,500 of principal and $258,680 of accrued interest. The post
restructuring amount of the Secured Debenture will be $1,600,000 with amended repayment terms that
defer repayment of the principal for three years and which will
enable the Company to focus on increasing production at its Chala
One milling facility located in Chala, Southern Peru.
The Company's Board of Directors has approved the proposed
shares for debt settlement (the "Shares for Debt") with EMP
and certain other creditors, providing for the settlement of an
aggregate of $1,081,229 in debt
through the issuance of an aggregate of 18,020,484 common shares of
the Company at an issue price of $0.06 per common share.
Edward Kelly, President and CEO,
said: "The settlement of debt and the deferral of the
principal repayments on the EMP debt by three years will enable us
to further strengthen our balance sheet and allow us to focus on
increasing production and profitability.
EMP have been very supportive of our growth strategy and
recognize that freeing up capital to invest in inventory will
support growth by increasing production, lowering unit costs and
improving profit margins."
With the Debt restructuring, the maturity date of the Debt will
be extended for 3 years to September 1,
2021. The Debt will have an annual interest rate of 11% paid
quarterly, with the first interest payment due September 1, 2018 and the Company will have the
privilege when not in default on any of its repayment or other
obligations, on five days' written notice, but without premium or
penalty, of prepaying all or any part of the principal outstanding
to EMP plus accrued and unpaid interest.
As consideration for EMP agreeing to restructure the Debt, the
Company will issue to EMP 1,066,667 units of the Company (the
"Bonus Units"). The Bonus Units are comprised of one common
share of the Company (each, a "Bonus Share") and one warrant
(each, a "Bonus Warrant"). Each Bonus Warrant is exercisable
into one common share of the Company at an exercise price of
$0.10 until the Maturity Date.
The securities issued pursuant to the Shares for Debt and the
restructured Debt will be subject to a hold period under applicable
securities laws, which will expire four months plus one day from
the date of the agreements. Closing of the financing is subject to
receipt of all necessary regulatory approvals, including approval
of the TSX Venture Exchange.
About Inca One
Inca One is a Canadian-based mineral processing company.
The Company's activities consist of the production of gold and
silver from the processing of purchased minerals located in
Peru. Peru is the 6th largest producer of gold in
the world and the Peruvian government estimates the small-scale
mining sector accounts for a significant portion of all Peruvian
gold production, estimated to be valued at approximately
US$3 billion annually. The
Company purchases its mineral from government registered
small-scale mining producers from various regions and processes it
at the Chala One milling facility located in Chala, Southern Peru.
On behalf of the Board,
Edward Kelly,
President and CEO
INCA ONE GOLD CORP.
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 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. Inca One believes
the expectations reflected in those forward-looking statements are
reasonable but no assurance can be given that these expectations
will prove to be correct and such forward-looking statements
included herein should not be unduly relied upon.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state in which such offer, solicitation, or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state.
SOURCE Inca One Gold Corp.