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
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 TSXVenture 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.
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