TORONTO, Sept. 12, 2012 /CNW/ - Mukuba Resources Limited (TSX-V:MKU) ("Mukuba" or the "Company") is pleased to announce that it has closed a substantial portion of its
previously announced private placement of 12,500,000 units (the "Units") at a subscription price of $0.12 per Unit
(the "Offering"). Today the Company issued 10,835,000 Units for
aggregate proceeds of approximately $1,300,000 and has accepted
subscriptions for the remaining 1,665,000 Units for aggregate proceeds
of approximately $200,000. The debentures previously issued as part of
the Offering and announced on August 28, 2012 were automatically
converted into 2,083,333 Units (which are included in the 10,835,000
Units issued today and described above). The securities issued as part
of the Offering (including the securities issued as finders' fees) may
not be traded before January 13, 2013.
Each Unit consists of one common share and one common share purchase
warrant (each a "Warrant") of the Company entitling the holder thereof,
during a period of 24 months from the date hereof, to purchase one of
the Company's common shares at an exercise price of $0.16 per common
The Company paid aggregate cash commissions of $75,000 and issued a
total of 1,250,000 warrants as finders' fees in connection with the
Offering. Each finder's fee warrant entitles the holder to purchase one
common share at $0.16 exercisable for 24 months.
Mukuba also announces that it intends to issue 416,666 common shares to
each of Mr. John Hawkrigg, Mr. Martin Horgan, Mr. Danny Keating, Mr.
Michael Smyth, all directors of Mukuba and Mr. Kelly Ehler, President
and Chief Executive Officer of Mukuba in satisfaction of the previously
announced compensation payments in lieu of fees and services rendered
to the Company (the "Share Compensation Payments") approved by
shareholders of the Company on August 30, 2012, subject to final
acceptance by the TSX Venture Exchange (the "Exchange").
Mukuba would also like to announce that it is exercising its right to
redeem its 10% convertible debentures due April 17, 2013 (the "Debentures") in accordance with the terms of the Debentures for a redemption price
of 100% of the $443,000 principal amount plus accrued interest (the "Debenture Redemption"). $50,000 of the redemption price will be paid in cash and the
remainder (including accrued interest) will be paid by issuing common
shares valued at 95% of the volume weighted average trading price for
the 20 consecutive trading days ending five trading days prior to the
redemption date. The Company intends to set the redemption date as
September 19, 2012 and issue common shares in connection with the
Debenture Redemption as soon as practicable thereafter, subject to
acceptance by the Exchange.
The Company is also pleased to announce that Mr. Dan Crandall has been
appointed as Chief Financial Officer of the Company, subject to
acceptance by the Exchange.
Mr. Crandall is a Chartered Accountant and has an Honours Bachelor of
Accounting (Co-op) degree from Brock University. In addition to acting
as the Company's Chief Financial Officer, Mr. Crandall is a Manager at
Marrelli Support Services Inc., specializing in accounting, regulatory
compliance and investment based services to numerous issuers on the TSX
and TSX-Venture exchanges. Previously Mr. Crandall was a Manager at
Collins Barrow Toronto LLP, a public accounting firm where he worked
for over 5 years. In connection with Mr. Crandall's appointment, the
Company intends to issue 50,000 stock options to Mr. Crandall having an
exercise price of $0.12.
Mr. Crandall replaces Kyle Appleby as CFO, who has resigned effective
immediately. The directors would like to express their appreciation to
Mr. Appleby for his contribution and past service to the Company.
The closing of the Offering, the Share Compensation Payments, the
Debenture Redemption and the appointment of Mr. Crandall as CFO
(including the issuance of stock options to Mr. Crandall) are all
subject to final acceptance by the Exchange.
About the Company
Mukuba is a Canadian mining company focused on the exploration and
development of certain African base metal assets alone and through a
joint venture partner. These assets include a 100% interest in the
Northcore Project, which is licensed for both copper and cobalt and
encompasses approximately 2,265 square km of geologically prospective
ground in the Central African Copperbelt region of Zambia. Mukuba is
also a party to a joint venture with Benzu Resources Limited to explore
and develop a copper and base metals project in the Democratic Republic
of the Congo.
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.
Securities regulators encourage companies to disclose forward-looking
information to help investors understand a company's future prospects.
This press release contains statements about our future business and
planned activities, including matters relating to the Offering. These
are "forward-looking" because we have used what we know and expect
today to make a statement about the future. Forward-looking statements
usually include words such as may, intend, plan, expect, anticipate,
believe or other similar words. We believe the expectations reflected
in these forward-looking statements are reasonable. However, actual
events and results could be substantially different because of the
risks and uncertainties associated with our business or events that
happen after the date of this press release. You should not place undue
reliance on forward-looking statements. As a general policy, we do not
update forward-looking statements except as required by securities laws
SOURCE: Mukuba Resources Limited
For further information:
Kelly Ehler, interim President and CEO
TEL: +1 (416) 368 4013
FAX: +1 (416) 603 9200