Castle Mountain Mining (CMM-V) arranges $350,000 placement, insider buying. CMM $2 million in cash.
www.castlemountainmining.com
Aug 16, 2013 - News Release
Castle Mountain Mining Company Ltd. has set up a proposed non-brokered private placement with the chairman of the company, Robert Buchan, pursuant to which he will subscribe for one million units of the company for a total of $350,000. Each unit will be sold at a price of 35 cents and will comprise one common share of the company and one-half of one warrant. Each warrant will be exercisable into one common share at an exercise price of 50 cents for a period of 18 months from the date of issuance. Mr. Buchan was given the opportunity to subscribe in this private placement in consideration of his role and contributions as chairman of the company. The private placement was approved by the independent directors of the company and is anticipated to close on or before Sept. 6, 2013, subject to customary closing conditions, including the approval of the TSX Venture Exchange. The securities issued in the private placement will be subject to a four-month hold period. The funds will be used for general corporate purposes. As previously disclosed, the company has completed its phase I drill program at the Castle Mountain project and currently has cash of approximately $2-million, not including funds from the proposed private placement.
As a result of the private placement, Mr. Buchan will hold an aggregate of 2,558,400 common shares of the company or 4.8 per cent, on a non-diluted basis.
Grant of options
The company also wishes to announce that its board of directors have granted stock options in the aggregate of 1.02 million to a director, officers, employees and consultants of the company. The options were granted under the company's stock option plan and the policies of the TSX Venture Exchange.
Each option is exercisable for one common share of the company at an exercise price of 35 cents, based on the closing price of the company's shares on Aug. 15, 2013.
Of the total grant, 50,000 options have been granted to Proconsul Capital Ltd., a company founded by Andreas Curkovic, whom the company has retained to provide investor relations services.
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