Parkside Resources exercises initial option on Forester Lake Property and closes a tranche of private placement
20 Jun, 2013, 10:58 ET
/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, June 20, 2013 /CNW/ - Parkside Resources Corporation (TSX-V: PKS) (the "Company") is pleased to announce that it has provided notice to Benton Resources Corp. ("Benton") that it has fulfilled its obligations regarding the Forester Lake Gold Property in northwestern Ontario, and is exercising the Initial Option to acquire an initial 60% interest in the property under the Option and Joint Venture Agreement dated March 7, 2011.
In order to exercise the Initial Option Parkside was obligated to complete work expenditures on the Forester Lake property of $300,000, make cash payments of $50,000, and issue 1,000,000 common shares to Benton. All three obligations have been met.
"Exercising the Initial Option represents a major milestone in the development of the Company", stated Donald Goldman, President and CEO of Parkside Resources. "We are pleased to have met the obligations of the Initial Option agreement and are looking forward to receiving the assay results from Parkside's inaugural nine-hole, 1,200 metre drill program on the Forester Lake Gold Property (see News Release dated April 12, 2013) in the coming weeks."
Parkside Resources has 60 days to provide Benton with its intention to acquire a further 10% interest in the Forester Lake Gold Property by incurring a further $700,000 in exploration expenditures on the property within three years.
The Company is also pleased to announce that it has closed a tranche of its non-brokered private placement announced in an April 26, 2013 News Release, on the terms and conditions described below:
The Company has issued 437,500 flow-through common share units ("Flow-Through Units") at $0.08 per unit for gross proceeds of $35,000. Each Flow-Through Unit consists of one flow-through common share (the "Flow-Through Shares") and one common share purchase warrant (the "Warrants"). The Company has also issued 263,000 units ("Units") at $0.06 per unit for gross proceeds of $15,780. Each Unit consists of one common share (the "Shares") and Warrant. Each Warrant entitles the holder thereof to acquire one common share in the capital of the Company at a price of $0.12 per common share until June 18, 2015.
In connection with the Offering, Macquarie Private Wealth Inc. received a cash finder's fee of $3,500.00 and was issued 43,750 finder's warrants ("Finder's Warrants"). Each Finder's Warrant is exercisable to purchase one common share at a price of $0.10 until June 18, 2015.
All securities issued under or in connection with the Offering are subject to a hold period that expires on October 18, 2013. The Offering is subject to the final acceptance of the TSX Venture Exchange.
The proceeds from the Flow-Through Private Placement will be used to incur exploration expenses on the Forester Lake Property, while the proceeds from the Non-Flow-Through Unit Private Placement will be used for general corporate and working capital purposes.
Finally, the Company announces that it has received conditional acceptance from the TSX Venture Exchange (the "Exchange") to extend the closing of the first tranche of the non-brokered private placement through July 31, 2013 to complete the financing announced on April 26, 2013.
Closing of the Offering is anticipated to occur on or before July 31, 2013 and is subject to receipt of applicable regulatory approvals including final Exchange acceptance. Finder's fees may be payable in connection with the Offering, in accordance with the policies of the Exchange. The securities issuable in connection with the financing will be subject to resale restrictions for a period of four months plus one day from the closing date.
This press release is not an offering of securities for sale in the United States. The common shares have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.
About Parkside Resources Corporation
Parkside Resources Corporation is a Canadian based mineral exploration company dedicated to building shareholder value through focused exploration, discovery and development of high quality precious and base metal projects. The Company has entered into an Option and Joint Venture Agreement with Benton Resources Corporation to explore the Forester Lake Gold Property which is located approximately 100km north of Pickle Lake, Ontario and roughly 35km southeast of Goldcorp's Musselwhite Gold Mine. Incorporated in 2005, Parkside Resources Corporation is a reporting issuer in the provinces of British Columbia and Alberta, the common shares of which are listed for trading on the TSX Venture Exchange under the symbol TSX-V: PKS.
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 release.
Forward Looking and other Cautionary Information
This release includes certain statements that may be deemed "forward‐looking statements". All statements in this release, other than statements of historical facts that address exploration drilling, exploitation activities and other related events or developments are forward‐looking statements. Although the Company believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause actual results to differ materially from those in forward‐looking statements include market prices, exploration and exploitation successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward‐looking statements.
SOURCE: Parkside Resources Corporation
For further information:
Richard Goldman, CFO
Tel: 416-862-1500: Fax: 416-862-1501
Email: [email protected]
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