TORONTO,
April 17, 2012 /PRNewswire/ - Mukuba
Resources Limited (TSXV: MKU) is pleased to announce the terms of
an offering (the "Offering") for gross proceeds to the company of
$398,700. The Company is issuing
443,000 principal amount of subordinated unsecured convertible
debentures (the "Debentures") of Mukuba on a private placement
basis.
The Debentures will be issued in denominations
of $1,000 par value and at an issue
price of $900 per $1,000 Debenture. The Debentures will mature
twelve (12) months after the date of issuance (the "Maturity Date")
and will bear interest at an annual rate of 10% payable at the
Maturity Date. Each $1,000 principal
amount of Debentures will be convertible into (i) 9,090 Common
Shares (representing a conversion rate of approximately
$0.11 per share) and (ii) 454
warrants to purchase Common Shares ("Purchase Warrants"). Each
Purchase Warrant will entitle the holder to purchase one common
share of Mukuba at $0.11 per common
share until and including 5:00 p.m. (Eastern
Standard Time) on October 18,
2014.
Completion of the Offering will be subject to
several conditions including the receipt of all necessary
approvals, including the approval of the TSX Venture Exchange (the
"TSX-V"). Mukuba has applied to list the common shares issuable
upon the conversion, redemption or maturity of the Debentures and
the exercise of the Purchase Warrants. The listing will be subject
to fulfilling the requirements of the TSX-V. Kelly Ehler is a
director of an affiliate of one of the purchasers of Debentures
pursuant to the Offering. Accordingly, pursuant to the rules of the
TSX-V, such purchaser is a non-arm's length party to the
Offering.
About the Company
Mukuba is a Canadian mining company focused on
the exploration and development of certain African base metal
assets alone and through a joint venture partner. These assets
include a 100% interest in the Northcore Project, which is licensed
for both copper and cobalt and encompasses approximately 2,274
square km of geologically prospective ground in the Central African
Copperbelt region of Zambia.
Mukuba is also a party to a joint venture with Benzu Resources
Limited to explore and develop a copper and base metals project in
the Democratic Republic of the
Congo. In addition, Mukuba holds an exclusive option to
purchase an 85% interest in the Nyimba Project, a pollymetallic
exploration project, located near the town of Nyimba, approximately
300 km east of Lusaka, Zambia.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-looking Information
Securities regulators encourage companies to disclose
forward-looking information to help investors understand a
company's future prospects. The statements that are concerning the
Offering are forward-looking statements. The words "believe",
"expect", "anticipate", "estimate", "intend", "may", "will",
"would" and similar expressions and the negative of such
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. These forward-looking statements are subject to
important assumptions, including the following specific
assumptions: receipt of all necessary approvals and general market
conditions at the time of the Offering. While Mukuba considers
these factors and assumptions to be reasonable based on information
currently available, they may prove to be incorrect.
Known and unknown factors could cause actual
results to differ materially from those projected in the
forward-looking statements. Such factors include, but are not
limited to: failure to receive necessary approvals and negative
general market conditions. The Offering may not be completed or may
not be completed on the same terms as previously announced. You
should not place undue reliance on forward-looking statements. As a
general policy, we do not update forward-looking statements except
as required by securities laws and regulations.
SOURCE Mukuba Resources Limited