THUNDER BAY, ON, March 26, 2015 /CNW/ - Kesselrun Resources Ltd. (TSXV:KES) ("Kesselrun" or the "Company") is pleased to provide the following corporate update:
Tamaka Gold Corp Debentures
Kesselrun is pleased to announce that Tamaka Gold Corp ("Tamaka"), a private corporation, has made the interest payment on Tamaka's $2,000,000 senior unsecured convertible debenture issued to Kesselrun by Tamaka (see news release dated August 6, 2014). The interest payment consisted of a cash payment of $38,164.38 and the issuance of a further $38,000 senior unsecured convertible debenture.
The Convertible Debentures of Tamaka will mature on the date which is seven years following their date of issuance, and will earn interest at a fixed rate of 10% per annum compounded annually. At the election of Tamaka, up to 50% of the interest may be paid by the issuance of additional Convertible Debentures of Tamaka. In the event of a liquidity event, the principal amount and all accrued and unpaid interest will automatically convert to common shares of Tamaka or the subsidiary of Tamaka which is the subject of the liquidity event, at a conversion price per common share that is equal to 50% of the value of each common share as determined in the context of such liquidity event. A liquidity event includes any of: a) an initial public offering of common shares or units of Tamaka or a subsidiary of Tamaka, b) a reverse take-over by a publicly listed company of all the issued and outstanding shares of Tamaka or a subsidiary of Tamaka, or c) the sale of a majority of the issued and outstanding common shares of Tamaka or a subsidiary of Tamaka representing a change of control. The Convertible Debentures of Tamaka will be subject to certain restrictions on transfer, and a right of first refusal in favour of Tamaka. Subject to certain exceptions, the Convertible Debentures of Tamaka will not be redeemable prior to the third (3rd) anniversary of the date of issuance thereof unless agreed to by the holder, after which they will be redeemable, in cash, at the option of Tamaka at the principal amount plus all accrued and unpaid interest.
Tamaka, through its wholly owned subsidiary Goldlund Resources Inc., owns 100% of the Goldlund Gold Project located between Dryden and Sioux Lookout, Ontario near Treasury Metal's Goliath Gold Project. For more information on Tamaka and the Goldlund Gold Project please refer to Tamaka's website www.tamakagold.com.
Stock Options Granted
The Board of Directors of Kesselrun has granted an aggregate of 700,000 incentive stock options exercisable at a price of $0.05 per common share for a period of five years to directors, officers and consultants of Kesselrun. The options were granted in accordance with the Company's stock option plan, which was approved by the shareholders of the Company at the Annual General Meeting held on December 23, 2014.
The option grant will be filed with the TSX Venture Exchange. Any securities issued pursuant to the exercise of stock options will be subject to a four-month hold period from the date of grant in accordance with securities regulation.
About Kesselrun Resources Ltd.
Kesselrun Resources is a Thunder Bay, Ontario-based mineral exploration company focused on growth through property acquisitions and discoveries. Kesselrun's management team possesses strong geological and exploration expertise with particular experience in Northwest Ontario. For more information about Kesselrun Resources, please visit www.kesselrunresources.com.
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 news release.
Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Kesselrun, Goldlund and Tamaka, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, dependence upon regulatory approvals, the execution of definitive documentation, the availability of financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
SOURCE Kesselrun Resources Ltd.