TORONTO, June 14 /CNW/ - Zaruma Resources Inc., (TSXV-ZMR.H), (the "Company" or "Zaruma") is pleased to announce the appointment of Daniel Major as a new member to the Board of Directors of the Company. The appointment is subject to the approval of the TSXV-NEX Board.
Mr. Major holds a B.Eng (Hons) Mining from the Camborne School of Mines, UK and has over 20 years of experience in the mining industry. During the first half of his career he worked in several roles, including production, planning and project engineering in various countries in Africa, with a focus on base and precious metals. Highlights included being the Chief Planning Engineer for the development of the first open pit platinum mine in the region, Potgietersrust Platinums. From Africa he moved to Investment Banking in London as the research analyst for both JPMorgan and HSBC, where he was part of the No.1 rated Global Mining Team. In 2004 he moved back to the production environment, becoming CEO of the Resource Sector of Basic Element in Russia, which included mining and exploration businesses as well as a substantial pulp and paper business. Since 2008 Mr. Major has been the Chief Operating Officer and Director of Ecometals Limited (TSXV-EC) and is a representative of Gravity Ltd., ("Gravity").
As previously reported, the Company has entered into a Memorandum of Understanding with Gravity that on completion of a satisfactory due diligence review, the completion of definitive agreements, the securing of a minimum of US$20 million in debt financing and reaching satisfactory settlement terms regarding certain existing agreements with Glencore International AG and its subsidiaries, Gravity may subscribe for US$20 million in units of Zaruma at a price of C$0.05 per unit, with each such unit comprising one common share and one warrant. Each such warrant would entitle the holder to acquire one common share of Zaruma at C$0.10 per share for a period of two years. The proceeds from the issuance of the units would be used for working capital purposes, to fund payments to existing contractors and suppliers as well as the remaining capital cost required to bring Luz del Cobre into production.
Gravity is currently providing working capital under an agreement whereby it may subscribe for up to C$500,000 of a 10% Senior Unsecured Convertible Promissory Note (the "Note") with warrants, in three separate advances. The Note will mature one year from the date of issue and is convertible into common shares of the Company at C$0.05 per share. As consideration for receiving the first advance under the Note in the amount of C$260,000, the Company issued 5,200,000 warrants to Gravity, exercisable for one common share of the Company per warrant at C$0.10 per share for a period of one year.
The proposed US$20 million equity financing for the Luz del Cobre copper project will be submitted to Zaruma's shareholders for approval at its Annual Meeting expected to be held on July 19. On approval of the proposed financing by the shareholders and the closing of the equity and debt financings, the Company expects to graduate its existing listing from the NEX board to the main board of the TSX Venture Exchange.
Zaruma Resources Inc. is listed on the NEX Board of the TSX Venture Exchange, (symbol ZMR.H) and the Frankfurt Stock Exchange, (symbol: ZMR). Common shares outstanding: 117,608,747.
This News Release contains forward-looking statements which are typically preceded by, followed by or including the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions, including securing additional funding.
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 ZARUMA RESOURCES INC.
For further information: For further information: Zaruma Resources Inc., 20 Toronto Street, 12th Floor, Toronto, ON, M5C 2B8, Canada, Fax: 416 367 3638, firstname.lastname@example.org, www.zaruma.com; Dr. Thomas Utter, President and CEO, Tel.: +1 521 662 210 5650, email@example.com; Frank van de Water, CFO and Secretary, Tel.: 416 869 0772, firstname.lastname@example.org