Newlox Gold Ventures Corp. press release
Newlox Raises $401,799
CSE - Canadian National Stock Exchange · Gold · Silver · Canada
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(via Thenewswire.ca)
Vancouver, BC / TNW-ACCESSWIRE / 18 November 2014 / Newlox Gold Ventures Corp. ("Newlox" or "the Company") (CSE: LUX, XETRA(R): NGO) is pleased to announce that the Board of Directors have approved the terms of a financing according to which the Company will issue unsecured convertible/redeemable debentures (Convertible Debentures) for proceeds of $385,000. Additionally the company has raised $16,799.08 in an Equity Placing for total gross proceeds of $401,799.08
The Convertible Debentures are convertible at the option of the holder or Redeemable at the option of the Company into common shares of the Company on or prior to the maturity date at a conversion price of $0.10 per common share.
The Convertible Debentures are fully amortized over a term of 24 months with a simple annual interest rate of 10 percent. Quarterly blended interest and principle payments will be made by the Company starting 3 months from completion.
The Company will issue to the Investors a number of warrants calculated in accordance with the following formula: Principal Loan Amount X 20 = the number of warrants. Each warrant is exercisable into one common share of the Company at $0.05 per share during the first year from the date of this Agreement and at $0.15 per share during the second year from the date of this Loan Agreement. All unexercised warrants shall expire within two years from the date of this Loan Agreement.
The Convertible Debentures have been sold pursuant to exemptions from prospectus requirements to purchasers in Canada and will not be listed on the Canadian Securities Exchange (CSE). The common shares issuable upon conversion will be listed on the CSE and will be subject to a hold period as required by securities regulation.
The Equity Placing of 335,982 units consists of one common share and one two year common share purchase warrant entitling the subscriber to purchase up to an additional 335,982 common shares at $0.05 within the first year and $0.15 per share within the second year.
The Company intends to deploy the proceeds of the Convertible Debentures and Equity Placing to expand plant capacity at its first processing facility and construct and in-house beneficiation facility to refine concentrates to dore and will also be applied to general corporate and working capital purposes.
Among the participants in the Debenture Financing are leading financial institutions including QIS Capital, Canaccord Genuity, and Quinsam Capital. The Board is pleased to have established further ties with these leading Canadian financial firms and looks forward to building its relationships further.
A fee of 8% was paid on a portion of the Convertible Debentures for a total payment of $10,000.
About Newlox Gold Ventures Corp.
Newlox Gold Ventures Corp. is a new gold processing and trading company pursuing precious metal related business opportunities in Latin America.
The company is producing gold concentrate in Latin America where management have access to multiple stockpiles of high-grade gold bearing feed material. With the feed material deposited on surface, the operation is achieving remarkably low production costs given that exploration, mining and crushing, the most expensive portions of a traditional gold producing operation, are entirely unnecessary.
The Company's first processing plant is now operational and is in the final stages of commercialization. Management anticipate the operation will rapidly deliver positive cash flow, which will be put to work, supporting organic growth in the region.
The longer term objective of Newlox Gold Ventures Corp. is to establish a dividend paying enterprise which will allow its shareholders to not only participate in equity value growth but also to share in profits, all the while contributing to an environmental clean-up effort and setting a high standard of social responsibility.
Website: www.newloxgold.com
Ryan Jackson, President Tel: +1 778 998 0867
Email: ryan@newloxgold.com
On Behalf of the Board, Newlox Gold Ventures Corp. Email: info@newloxgold.com
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