Gold Mountain Mining (GUM-V), Lowell Copper (JDL-V) and Anthem United (AFY-V) Announce Closing of Concurrent Financing in Connection With Proposed Business Combination
Oct 4th 2016 - NR
Gold Mountain Mining, Lowell Copper and Anthem United are pleased to announce that, further to their news releases dated August 15 and 31, September 23, 27, 29 and October 3, 2016, Lowell Copper has closed, subject to final approval of the TSX Venture Exchange, the second and final tranche (the "Final Tranche") of the private placement financing (the "Concurrent Financing") occurring in connection with the proposed business combination to create JDL Gold Corp. (the "Transaction").
The Final Tranche comprises 5,732,816 Subscription Receipts at a price of CDN$2.00 per Subscription Receipt for gross proceeds of CDN$11,465,632. In aggregate, the Concurrent Financing comprises 30,240,691 Subscription Receipts for gross proceeds of CDN$60,481,382.
Each Subscription Receipt entitles the holder to receive automatically upon closing of the Transaction, without any further action on the part of the holder and without payment of additional consideration, one post-consolidation common share (a "Common Share") and one post-consolidation share purchase warrant (a "Warrant") of JDL Gold Corp. Each Warrant will entitle the holder to acquire one Common Share at a price of CDN$3.00 for a period of five years following the date of the closing of the Transaction. The Shares and Warrants issued upon conversion of the Subscription Receipts may be traded by the holders through the facilities of the TSX Venture Exchange. In order to facilitate this, the Warrants are expected to be listed for public trading on the TSX Venture Exchange, subject to compliance with applicable TSX-V policies.
An aggregate cash commission of CDN$479,202 is, subject to final approval of the TSX Venture Exchange, payable in connection with the Concurrent Financing.
The Closing of the Transaction and the automatic conversion of Subscription Receipts thereafter is expected to occur on or about October 6, 2016. For full details of the Transaction, please see the Joint Circular of Lowell Copper, Gold Mountain and Anthem which was filed under each company's SEDAR profile on September 1, 2016.
The proceeds from the Concurrent Financing will be used to increase gold production from the Koricancha Mill in Peru, toward advancing the Elk Gold project in BC, the Warintza project in Ecuador and other projects within the Lowell Copper portfolio, to reduce debt, to take advantage of potential acquisition opportunities and for general corporate purposes.
About Lowell Copper Inc.
Lowell Copper is a copper exploration and development focused company led by J. David Lowell and is listed on the TSX-V. The company was founded to leverage the current market conditions and build a portfolio of economic copper projects through a combination of exploration, mergers and acquisitions by utilizing the considerable experience and success of management and directors of the company.
About Gold Mountain Mining Corporation
Gold Mountain is a public resource company managed by an experienced team of professionals with a solid track record of exploration, development and operational success. The company owns 100% of the 16,700 hectare Elk Gold property located in Southern British Columbia, which it intends to develop into a precious metal producer, and is also seeking additional near term production assets to further build shareholder value.
About Anthem United Inc.
Anthem is focused on building a precious metals producing company through the acquisition and development of silver and gold mineral assets. The company is currently advancing the operation of the 350 tonne per day Koricancha Mill in Peru, in which it owns a 75% interest as well as an 8% cost of sales royalty payable to Anthem. The company's joint venture partner, EMC Green Group S.A., owns the remaining 25% and is the operator of the Koricancha Mill. The Koricancha Mill produces gold for its own account by processing gold-bearing material purchased from small scale and artisanal miners in Peru.
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.
Lowell Copper Ltd.
Marcel de Groot
(604) 628-1102
lowellcopper.com
Gold Mountain Mining Corporation
Chris McLeod
(604) 558-4653
aumtn.com
Anthem United Inc.
Greg D. Smith
(604) 336-8190
anthemu.com |
