TORONTO, Aug. 28, 2012 /CNW/ - Mukuba Resources Limited
(TSX-V:MKU) ("Mukuba" or the "Company") is pleased to announce
that it has closed a private placement of convertible debentures in
the aggregate principal amount of $250,000 due to mature on August 27, 2013 (the "Debentures") for gross
proceeds of $250,000.
The Debentures are part of a larger private
placement financing of the Company (the "Private Placement")
previously announced on July 12,
2012. The Private Placement will comprise a maximum of
12,500,000 units (the "Units") at a subscription price of
$0.12 per Unit. Each Unit will
consist of one common share and one common share purchase warrant
of the Company (each a "Warrant") entitling the holder thereof,
during a period of 24 months from the date of closing of the
Private Placement (the "Closing"), to purchase one of the Company's
common shares at an exercise price of $0.16 per common share.
The Private Placement is conditional upon a
consolidation of the Company's outstanding common shares at a ratio
of four pre-consolidation common shares for one post-consolidation
common share (the "Consolidation). The Consolidation requires
approval by the holders of the Company's common shares at a meeting
of shareholders expected to occur on August
30, 2012. All references to Units are on a
post-Consolidation basis unless otherwise identified.
The Debentures are convertible into 2,083,333
Units upon Closing of the Private Placement. These Units are
included in the 12,500,000 Units described above. In the event that
the Consolidation and the Private Placement are not completed by
December 27, 2012, the Debentures
will bear interest at a rate of 10% effective from the date of
issue and be convertible into shares at a rate of $0.10 per common share on a pre-Consolidation
basis.
Completion of the Private Placement is subject
to the receipt of all required regulatory and shareholder
approvals, including acceptance by the TSX Venture Exchange.
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.
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. This press release contains statements
about our future business and planned activities, including matters
relating to the Offering, future shareholder meetings and the use
of proceeds of the Offering. These are "forward-looking" because we
have used what we know and expect today to make a statement about
the future. Forward-looking statements usually include words such
as may, intend, plan, expect, anticipate, believe or other similar
words. We believe the expectations reflected in these
forward-looking statements are reasonable. However, actual events
and results could be substantially different because of the risks
and uncertainties associated with our business or events that
happen after the date of this press release. 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