Mineral Hill moves its offices to Richmond, B.C., and receives board approval for bridge loans
TSX Venture Exchange: MHI
Frankfurt Stock Exchange: N8Z1/WKN: AODLHP
Pink Sheets: MHIFF
RICHMOND, BC, Feb. 7, 2014 /CNW/ - Mineral Hill Industries Ltd. (the "Company" or "Mineral Hill") is pleased to announce that it has moved its offices to the City of Richmond, BC, Canada. The Company has entered into a sublease with Nass Valley Gateway Ltd. ("NVG") to use the unit 120B at 12820 Clarke Place in Richmond, B.C. as its administrative office. With this arrangement, the Company exercised cost savings of more than 60% in comparison to the previous office lease arrangement.
As the Company's private placement, which was announced on July 2013, did not complete, Mineral Hill's Board of Directors approved working capital advances which have been made during the period January 1, 2013 to January 31, 2014 by companies related to two Directors of the Company, in the combined total amount, as at January 31, 2014, of $538,136 in the form of loans, with a monthly interest of 0.70%. The loans were provided to the Company for general working capital in order to meet its minimum administrative obligations, including payments for ongoing asset maintenance and required fees to regulatory bodies in Canada and the US.
The loans by the two companies are considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the Company is in serious financial difficulty, the loans are designed to improve the financial position of the Company, and at least two-thirds of the Company's Directors, acting in good faith, have determined the loans are reasonable in the circumstances of the Company.
Based on commitments, management is confident it will be able to raise the necessary funding for the completion of its testing program on its Liberty Mine gold project and to fund an additional exploration program on its Lithium properties in Quebec via a flow-through share issue.
All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company's control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or to revise them to reflect the occurrence of future unanticipated events.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Mineral Hill Industries Ltd.For further information: visit www.mineralhill.com or contact: Dieter Peter, President & CEO, Phone: (604) 278-1132, Fax: (604) 278-1139