Zincore Completes Shares for Debt Transaction
VANCOUVER, BC--(Marketwired - May 17, 2017) - Zincore Metals Inc. (NEX BOARD: ZNC.H) ("Zincore" or the "Company") reports that it has completed the shares for debt transaction originally announced on May 5, 2017 (the "Shares for Debt Transaction"), after receiving the approval of the TSX Venture Exchange ("TSXV") to settle indebtedness with certain creditors of the Company and the Company's Peruvian subsidiary, Exploraciones Collasuyo SAC.
Pursuant to the Shares for Debt Transaction, the Company has issued 5,431,910 common shares of the Company (the "Shares") at a deemed price of $0.195 per Share to settle debt in the amount of $1,059,222.
All securities issued in connection with the Shares for Debt Transaction are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities law legislation.
Pursuant to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions ("MI 61-101") and TSX Venture Exchange Policy 5.8, a portion of the shares for debt transaction constitutes a "related party transactions". The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101.
Jorge Benavides acquired ownership of 2,045,027 Shares pursuant to the Shares for Debt Transaction. Mr. Benavides now holds or exercises control or direction over a total of 2,508,789 Shares representing approximately 13.89% of the current issued and outstanding Shares of the Company and 127,667 options for the purchase of an additional 127,667 Shares of the Company. Should Mr. Benavides exercise all of his 127,667 options, he would hold or exercise control or direction over approximately 14.49% of the then issued and outstanding Shares. Mr. Benavides acquired the 2,045,027 Shares as settlement of $398,780.26 of indebtedness owed by the Company and may, depending on market circumstances, acquire additional securities or dispose of existing securities of the Company.
A copy of the Early Warning Report for Mr. Benavides will be available on SEDAR.
About Zincore
Zincore is a Vancouver-based mineral exploration company focused on zinc and related base metal opportunities in Peru. The Company's common shares trade on the NEX Board of the TSX Venture Exchange under the symbol ZNC.H. For more information, please see our website at www.zincoremetals.com
Neither the 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.
Cautionary Note Regarding Forward Looking Statements
This news release contains certain forward-looking statements, Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or does not expect", "is expected", anticipates" or "does not anticipate" "plans", "estimates" or "intends" or stating that certain actions, events or results " may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
Contact
For more information please contact:
Zincore Metals Inc.
Adam Ho
CFO & VP, Corporate Development
(604) 669-6611
aho@zincoremetals.com