HALIFAX, Feb. 25, 2015 /CNW/ - Stockport Exploration Inc. (TSX: SPT) ("Stockport" or the "Company") has arranged a $295,000 bridge loan financing (the "Loans") from various directors, and other private investors of the Company, by the issuance of 12% unsecured convertible notes (the "Notes"). The net proceeds of the Loans will be used for capital expenditures and working capital requirements for the Company's pilot gold recovery circuit in Kenya. Under the terms of the financing, the principal amount of the Loans will bear interest at 12% per annum, payable quarterly commencing August 25, 2015, and will be repayable by the Company on or before February 25, 2018 (the "Maturity Date").
The Company expects to repay the Loans and accrued interest from the projected cash flow from its gold recovery circuit, currently in development. The principal amount of the Notes are convertible into common shares of the Company (the "Shares") at the election of the holder at the rate of $0.05 of principal converted per Share (the "Conversion Price").
If the Loans are not repaid within three days of the Maturity Date, the Notes will be automatically converted into Shares. In this event, the principal amount of the Notes will be converted into Shares at the Conversion Price, and any accrued but unpaid interest will be converted into Shares at the 5-day VWAP preceding the date of conversion.
About Stockport Exploration:
Stockport is focused on the exploration of a district-scale land package along a prolific gold-hosting greenstone belt in southwest Kenya. The 2,020 km2 property package has potential to host various mineral deposit types, the most prominent being those of Lode- Gold and Copper-Zinc-Gold-Silver massive sulphide association. Stockport also holds the La Morena Copper-Silver property in Coahuila, Mexico, the Seymour Lake Tantalum-Lithium-Beryllium property near Armstrong, Ontario, and the KM61 property, which hosts a National Instrument 43-101 compliant Molybdenum-Copper-Silver resource, also near Armstrong, Ontario.
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 future production, reserve potential, continuity of mineralization, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes that 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. For more information on the Company and the risk factors inherent in its business, investors should review the Company's Annual Information Form at www.sedar.com
SOURCE Stockport Exploration Inc.
For further information: STOCKPORT EXPLORATION, Jim Megann, President and CEO, (902) 482-1240, [email protected], www.stockportexploration.com