Carpathian Gold (CPN-Cse) May 19, '16 wishes to announce that it has closed the previously announced financing whereby Forbes & Manhattan Inc., Sulliden Mining Capital (SMC-T). and Black Iron (BKI-T). have subscribed to a private placement of units at a subscription price of CAD$0.07 per Unit for aggregate gross proceeds of ten million dollars (CAD$10,000,000). Each Unit consists of one (1) common share of the Corporation and one-half (0.5) of a common share purchase warrant.
Guy Charette, interim CEO stated: "We are pleased with the quick closing of our previously announced financing with Forbes and Manhattan and look forward to our renewed focus on our Rovina Project in Romania".
Stan Bharti, Chairman of Forbes and Manhattan stated: "Forbes and its team are excited to get involved with an asset such as Rovina. Much like our previous successes at Sulliden Gold, Avion Gold, Belo Sun Mining and Central Sun Mining, we view Rovina as a tremendous opportunity to bring our technical, social, and capital market expertise to unlock the value in Rovina in the coming months."
In conjunction with the closing of the financing Mr. John Hick and Mr. Julio Carvalho have stepped down from the board of directors. The Board would like to thank them for their hard work over the last several years during a difficult time for Carpathian.
The board would also like to welcome Mr. Stan Bharti, Mr. Peter Tagliamonte and Mr. Matt Simpson to the board of Carpathian.
Additionally the Board of Carpathian would like to announce the appointment of Mr Scott Moore as the new interim CEO of Carpathian. Mr. Moore is a seasoned capital markets executive and current COO of Forbes and Manhattan Inc. Mr. Moore has been involved in numerous turnaround situations over the last decade, specifically in the gold space with Avion gold in Mali and Sulliden Gold in Peru. The board would also like to extend its thanks to Mr. Guy Charette for his guidance through the divestiture of MRDM and the debt resolution with Macquarie. We look forward to Guy's continued input as a member of the board of directors of Carpathian.
G. Scott Moore, Incoming CEO stated: "We have been looking to get involved in Rovina for several years as we believe it represents an outstanding opportunity. While there are some challenges to overcome, we are confident on their resolution fully surfacing Rovina's true value."
Each whole Warrant will entitle the holder to acquire one (1) Common Share at a price of CAD$0.12 for a period of two (2) years from the date of issuance. However, the Warrant exercise period may be accelerated if after the date that is 4 months and a day following the closing, the Common Shares trade at a price above CAD$0.15 for a period of 20 consecutive trading days.
Origin Merchant Partners acted as financial advisor for Carpathian in connection with this transaction.
About Carpathian
Carpathian is an exploration and development company whose primary business is focused on advancing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project located in Romania.
The CSE does not accept responsibility for the adequacy or accuracy of this news release.
Contact Information:
Carpathian Gold Inc.
G. Scott Moore
Chief Executive Officer
+1-416-861-5903
info@carpathiangold.com
www.carpathiangold.com
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