Chrysalis Capital VII Corporation announces revised financing and acquisition
terms

/THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES, TO UNITED STATES NEWS WIRE SERVICES OR TO UNITED STATES PERSONS/

TSX Venture Exchange Symbol: SEV.P

TORONTO, Aug. 10 /CNW/ - Chrysalis Capital VII Corporation (the "Corporation") announces that it has entered into an agreement, dated August 10, 2010 with Alexander Nubia Inc. ("ANI") providing for the revision to the terms of ANI's previously announced brokered private placement as well as amendments to the terms of the acquisition agreement described in the filing statement of the Corporation dated May 31, 2010 (filed on SEDAR on June 2, 2010) (the "Filing Statement"). It is anticipated that the Corporation will file an amended Filing Statement (the "Amended Filing Statement") in due course.

Revised ANI Private Placement Terms

Pursuant to a new engagement letter dated August 10, 2010 among the Corporation, ANI and Macquarie Private Wealth Inc. ("Macquarie"), ANI intends to raise up to $5,000,000 in a brokered private placement, led by Macquarie along with HB Markets Plc, Industrial Alliance Securities and Secutor Capital Management as sub-agents, of up to 20,000,000 units (the "Units") at a price of $0.25 per Unit on a commercially reasonable efforts basis (the "Private Placement"). Each Unit is comprised of one common share of ANI (the "ANI Shares") and one-half common share purchase warrant ("Warrant"). Each whole Warrant is exercisable for a period of two years and will entitle the holder to purchase one common share of ANI at a price of $0.375 during the first year or one common share of ANI at a price of $0.50 during the second year.

In consideration for Macquarie's services in connection with the Private Placement, Macquarie will be paid a fee equal to 7% of the gross proceeds of the Private Placement. In addition, Macquarie will receive broker warrants ("Broker Warrants") equal to 10% of the number of Units sold under the Private Placement. Each Broker Warrant will entitle Macquarie and its sub-agents to purchase an ANI Share for twenty-four months at a price of $0.25 per ANI Share.

The Private Placement is being completed in connection with the Corporation's proposed qualifying transaction with ANI (the "Proposed Transaction") and the terms of this Private Placement supersede any private placement terms detailed in the Filing Statement. The closing of the Private Placement is conditional on, among other things, customary conditions, completion of satisfactory due diligence by Macquarie, all necessary regulatory approvals and the completion of the Proposed Transaction. ANI intends to use the proceeds of the Private Placement for the continued exploration of the mineral exploration concessions of ANI, to pay the costs of the Proposed Transaction and for general working capital purposes.

Amendment to ANI May 2010 Non-Brokered Financing

In connection with the revisions to the terms of the Private Placement, ANI has agreed to revise the effective price and terms of the 426,000 units (the "Non-Brokered Units") issued to investors in the non-brokered private placement which closed in May, 2010, consistent with the revised price and terms of the Units to be issued under the Private Placement (being $0.25 per Non-Brokered Unit). The Non-Brokered Units were originally issued at a price of $0.50 per Non-Brokered Unit, with each Non-Brokered Unit comprised of one ANI Share and one-half of one share purchase warrant (the "Original Warrants") with each whole Original Warrant entitling the holder to acquire a further ANI Share for a period of two years exercisable at $0.75 in the first year and $1.00 in the second year. To effect the re-pricing, ANI will issue these investors an aggregate of 426,000 additional ANI shares for no additional consideration. In addition ANI will cancel the Original Warrants and issue an aggregate of 426,000 replacement warrants, exercisable for a period of two years from the original closing date at a price of $0.375 in the first year, and $0.50 thereafter.

Amendments to ANI Performance Shares

The Corporation and ANI have also agreed to amend the terms of the performance milestones which must be met by the Resulting Issuer (as defined herein) in connection with the issuance of an aggregate of 10,000,000 ANI Shares (the "Performance Shares") to certain directors, officers and consultants upon ANI achieving certain milestones with respect to the mineral exploration concessions. The milestones which trigger the issuance of these shares are the establishment of a Mineral Resource as defined by the Canadian Institute of Mining. Under the revised terms, the Performance Shares will be issuable by the Resulting Issuer (as defined herein) as follows:

    
    1.  if a Mineral Resource of at least 1.0 million oz of gold or gold
        equivalent resource is established - 3,333,334 ANI Common Shares;

    2.  if a Mineral Resource of at least 1.0 million oz of gold or gold
        equivalent resource is established and ANI is listed on, or completes
        a business combination transaction with another entity listed on a
        recognized stock exchange on or before October 31, 2010 - 1,666,666
        ANI Shares;

    3.  if a Mineral Resource of at least 1.5 million oz of gold or gold
        equivalent resource is established - 1,666,666 ANI Shares;

    4.  if a Mineral Resource of at least 1.5 million oz of gold or gold
        equivalent resource is established and ANI is listed on, or completes
        a business combination transaction with another entity listed on a
        recognized stock exchange on or before October 31, 2010 - 833,333 ANI
        Shares;

    5.  if a Mineral Resource of at least 2.0 million oz of gold or gold
        equivalent resource is established - 1,666,666 ANI Shares; and

    6.  if a Mineral Resource of at least 2.0 million oz of gold or gold
        equivalent resource is established and ANI is listed on, or completes
        a business combination transaction with another entity listed on a
        recognized stock exchange on or before October 31, 2010 - 833,333 ANI
        Shares.
    

Amendments to the Amalgamation

As a result of the revised Private Placement, the Corporation and ANI have agreed to amend the terms of the three-cornered amalgamation, pursuant to which the Corporation will acquire all of the issued and outstanding common shares of ANI (the "Amalgamation"). Under the revised terms of the Amalgamation, the Corporation will now issue 1.666667 common shares for each one (1) ANI Share (the "Exchange Ratio") outstanding immediately prior to the Amalgamation (instead of 2.2222222 common shares of the Corporation for every one (1) ANI Share, as previously announced). All other terms of the Amalgamation will remain as previously disclosed in the Filing Statement.

In connection with the Amalgamation, it is anticipated that the Corporation will issue 49,784,998 common shares to holders of ANI Shares; excluding any shares issued pursuant to the Private Placement. As such, upon completion of the Amalgamation and the Private Placement, there will be 89,118,332 common shares of the resulting issuer corporation (the "Resulting Issuer") issued and outstanding on an undiluted basis assuming the entire Private Placement is sold.

About Alexander Nubia Inc.

ANI is a private mineral exploration company whose mission is to implement the technical expertise of developed mineral-exploration jurisdictions, such as that of Canada, in resource-rich Africa. Initially, ANI has established Egypt as its platform country, focusing on the under-developed Eastern Desert, where historical mining of gold and copper dates back to Pharaonic times.

ANI presently controls the Abu Marawat concession in Egypt. The Abu Marawat concession, covering an area of approximately 1,370 km(2) contains the main Abu Marawat Deposit, Semna, Sir Bakis, and Hamama gold and base-metal exploration targets and numerous other ancient gold diggings. The concession is located in Egypt's Eastern Desert as part of the Nubian Shield.

About Chrysalis Capital VII Corporation

Chrysalis Capital VII Corporation is The Chrysalis Capital Group Inc.'s ("TCCG") seventh capital pool company ("CPC"). TCCG is entirely focused on generating superior shareholder returns through the creation of a series of unique CPCs. To date, TCCG has created seven Chrysalis branded CPCs and has assisted in the creation of four additional CPCs under TCCG's partners program. For more information about TCCG, please visit www.tccg.ca.

The foregoing proposed amendments are subject to TSXV approval.

Completion of the Proposed Transaction is subject to a number of conditions, including but not limited to, satisfactory due diligence reviews, negotiation and execution of definitive transaction documentation, approval by both boards of directors, availability of prospectus and registration exemptions or obtaining exemptive relief, obtaining any necessary governmental and third party approvals and TSXV acceptance. There can be no assurance that the Proposed Transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Filing Statement and Amended Filing Statement to be prepared in connection with the Proposed Transaction, any information released or received with respect to the Proposed Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the Proposed Transaction and has neither approved nor disapproved the contents of this press release.

Certain information in this press release contains forward-looking statements or information ("forward-looking information"), including closing of the Proposed Transaction, performance milestones, the receipt of applicable regulatory approvals, closing of the Private Placement, the anticipated use of proceeds from the Private Placement. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in filings by the Corporation with the Canadian securities regulators, which filings are available at www.sedar.com.

The Corporation's Common Shares will remain halted until such time as permission to resume trading has been obtained from the TSXV. The Corporation is a reporting issuer in Alberta, British Columbia and Ontario.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

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 CHRYSALIS CAPITAL VII CORPORATION

For further information: For further information: Chrysalis Capital VII Corporation, Robert Munro, CEO/CFO, t: (877) 272-4073, e: contact@tccg.ca, w: www.tccg.ca; Alexander Nubia Inc., Donald M. Cameron, CFO, t: (647) 504-4711, e: donc@alexandernubia.com, w: www.alexandernubia.com

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CHRYSALIS CAPITAL VII CORPORATION

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