Ferrometals acquires convertible debenture of Cancana Resources Corp.
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES AND NOT FOR DISSEMINATION IN THE UNITED STATES
MONTREAL, Dec. 23, 2014 /CNW Telbec/ - Ferrometals BV ("Ferrometals") announces that, in connection with a financing announced by Cancana Resources Corp. ("Cancana") on December 22, 2014, it has acquired ownership and control over a convertible secured debenture in a principal aggregate amount of US$1.5 million (the "Debenture") issued by Cancana, on December 23, 2014. The Debenture matures on December 23, 2017 and does not bear interest. The principal amount of the Debenture is convertible into fully paid and non-assessable common shares in the capital of Cancana ("Cancana Shares") at a conversion price of $0.175 per share.
Assuming the conversion in full of the principal amount of the Debenture, Ferrometals would acquire ownership and control over a maximum of 9,979,714 Cancana Shares (using the Bank of Canada noon exchange rate on December 22, 2014, as per the terms of the Debenture), representing approximately 11.34% of the outstanding Cancana Shares, calculated on a partially diluted basis assuming the full conversion of the principal amount of the Debenture only.
Ferrometals has ownership and control over 36,955,297 Cancana Shares (representing approximately 47.35% of the outstanding Cancana Shares), the right to acquire 13,857,656 Cancana Shares through 13,857,656 common share purchase warrants of Cancana ("Cancana Warrants"), and the Debenture.
Assuming the full exercise of the 13,857,656 Cancana Warrants as well as the conversion in full of the principal amount of the Debenture, Ferrometals would acquire ownership and control over a maximum of 60,792,667 Cancana Shares (including the 36,955,297 Cancana Shares over which Ferrometals currently has ownership and control and using the Bank of Canada noon exchange rate on December 22, 2014, as per the terms of the Debenture). These combined holdings would represent approximately 59.67% of the outstanding Cancana Shares, calculated on a partially diluted basis assuming the full exercise of the 13,857,656 Cancana Warrants and the full conversion of the principal amount of the Debenture only.
Ferrometals acquired the Debenture for investment purposes only and not with a view to materially affecting control of Cancana.
Ferrometals relied on section 2.10 of National Instrument 45-106 – Prospectus and Registration Exemptions for the purchase of the Debenture as the purchase price of the Debenture exceeds $150,000 and was paid in cash.
SOURCE: Ferrometals BV
For further information: or to obtain a copy of the Early Warning Report filed by Ferrometals, please contact Anthony Julien at +61 447 573 071
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