TORONTO, Dec. 29 /CNW/ - Zaruma Resources Inc., (TSXV-ZMR.H), (the "Company" or "Zaruma") reported that at today's Special Meeting the Shareholders approved a private placement of units consisting of common shares and common share purchase warrants of the Company to raise gross proceeds of up to US$25 million, of which US$20 million may be purchased by Zaruma Gold Mining Ltd. ("ZGM"), or such other person or persons designated by ZGM, as well as a debt financing to raise approximately US$30 million, substantially in accordance with terms previously reported. The financings were approved by more than 99% of the votes cast at the Shareholders' Meeting.
One of the conditions of the private placement is that the Company will have arranged a minimum of US$20 million in new debt financing. The Company is currently completing the negotiation of a US$30 million debt financing with a major international bank in order to fund the settlement of the outstanding debt financing from a subsidiary of Glencore International AG, and the development of the Luz del Cobre Copper Project to production.
The Shareholders also approved a resolution increasing the number of directors to seven and electing two additional directors to fill the vacancies created by such increase, conditional upon completing the equity and debt financings. On completion of the financing ZGM will have a controlling interest in the Company and will have a majority of representatives on the Board of Directors.
Zaruma is listed on the NEX Board of the TSX Venture Exchange, (symbol ZMR.H) and the Frankfurt Stock Exchange, (symbol: ZMR). Common shares outstanding: 121,108,747.
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.
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