Cliffmont Announces US$270,000 Convertible Loan
VANCOUVER, April 10, 2014 /CNW/ - Cliffmont Resources Ltd. (TSX-V - CMO) ("Cliffmont" or the "Company") announces a private arm's length Colombian company will loan the Company USD$270,000 in the form of the secured Convertible Loan, bearing an interest rate of 7% per annum and due six months from the date of advance. The principal of the Convertible Loan will be convertible at the option of the Lender into common shares of the Company at a conversion price of CDN$0.15 per unit. Each Unit comprises one common share and one transferable share purchase warrant. Each warrant (a "Warrant") entitles the holder to purchase one common share of the Company, at a price of CDN$0.25 per share, for a period of 12 months from closing, with a forced conversion which comes into effect once the shares trade at a price above CDN$0.35 per common share for a period of 15 consecutive days.
The net proceeds from this loan will be used for a portion of the final property payment of the San Luis Project and for general working capital purposes. Any securities issued upon conversion of the loan will be subject to a four month hold period. The closing of the loan is subject to acceptance from the TSX Venture Exchange. The lender will be granted a 26% security interest to one of the Company's mineral properties.
ON BEHALF OF THE BOARD
Jeff Tindale, President and CEO
Forward Looking Statements. This Company news release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
"Neither 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 Cliffmont Resources Ltd.For further information: Jeff Tindale, President and CEO, Telephone: (604) 568-6894, Facsimile: (604) 568-6834, Website: www.cliffmontresources.com, Email: firstname.lastname@example.org