TORONTO, Sept. 12, 2012 /CNW/ - Mukuba Resources
Limited (TSX-V:MKU) ("Mukuba" or the "Company") is pleased to
announce that it has closed a substantial portion of its previously
announced private placement of 12,500,000 units (the "Units") at a
subscription price of $0.12 per Unit
(the "Offering"). Today the Company issued 10,835,000 Units
for aggregate proceeds of approximately $1,300,000 and has accepted subscriptions for the
remaining 1,665,000 Units for aggregate proceeds of approximately
$200,000. The debentures previously
issued as part of the Offering and announced on August 28, 2012 were automatically converted into
2,083,333 Units (which are included in the 10,835,000 Units issued
today and described above). The securities issued as part of the
Offering (including the securities issued as finders' fees) may not
be traded before January 13,
2013.
Each Unit consists of one common share and one
common share purchase warrant (each a "Warrant") of the Company
entitling the holder thereof, during a period of 24 months from the
date hereof, to purchase one of the Company's common shares at an
exercise price of $0.16 per common
share.
The Company paid aggregate cash commissions of
$75,000 and issued a total of
1,250,000 warrants as finders' fees in connection with the
Offering. Each finder's fee warrant entitles the holder to purchase
one common share at $0.16 exercisable
for 24 months.
Mukuba also announces that it intends to issue
416,666 common shares to each of Mr. John
Hawkrigg, Mr. Martin Horgan,
Mr. Danny Keating, Mr. Michael Smyth, all directors of Mukuba and Mr.
Kelly Ehler, President and Chief
Executive Officer of Mukuba in satisfaction of the previously
announced compensation payments in lieu of fees and services
rendered to the Company (the "Share Compensation Payments")
approved by shareholders of the Company on August 30, 2012, subject to final acceptance by
the TSX Venture Exchange (the "Exchange").
Mukuba would also like to announce that it is
exercising its right to redeem its 10% convertible debentures due
April 17, 2013 (the
"Debentures") in accordance with the terms of the Debentures
for a redemption price of 100% of the $443,000 principal amount plus accrued interest
(the "Debenture Redemption"). $50,000 of the redemption price will be paid in
cash and the remainder (including accrued interest) will be paid by
issuing common shares valued at 95% of the volume weighted average
trading price for the 20 consecutive trading days ending five
trading days prior to the redemption date. The Company intends to
set the redemption date as September 19,
2012 and issue common shares in connection with the
Debenture Redemption as soon as practicable thereafter, subject to
acceptance by the Exchange.
The Company is also pleased to announce that Mr.
Dan Crandall has been appointed as
Chief Financial Officer of the Company, subject to acceptance by
the Exchange.
Mr. Crandall is a Chartered Accountant and has
an Honours Bachelor of Accounting (Co-op) degree from Brock University. In addition to acting as the
Company's Chief Financial Officer, Mr. Crandall is a Manager at
Marrelli Support Services Inc., specializing in accounting,
regulatory compliance and investment based services to numerous
issuers on the TSX and TSX-Venture exchanges. Previously Mr.
Crandall was a Manager at Collins Barrow Toronto LLP, a public
accounting firm where he worked for over 5 years. In connection
with Mr. Crandall's appointment, the Company intends to issue
50,000 stock options to Mr. Crandall having an exercise price of
$0.12.
Mr. Crandall replaces Kyle Appleby as CFO, who has resigned effective
immediately. The directors would like to express their appreciation
to Mr. Appleby for his contribution and past service to the
Company.
The closing of the Offering, the Share
Compensation Payments, the Debenture Redemption and the appointment
of Mr. Crandall as CFO (including the issuance of stock options to
Mr. Crandall) are all subject to final acceptance by the
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 2,265
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. 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