Dec 31 2014
Brian Arkell, CEO and President of Caza Gold Corp. is pleased to announce that the Company has closed its non-brokered private placement of US$3.8 million and finalized the purchase of the Los Andes gold project in Nicaragua.
Closing of US$3,800,000 Private Placement Pursuant to an investment agreement with Polygon Mining Opportunity Master Fund (“Polygon”) dated December 18, 2014, the Company has issued to Polygon 88,160,000 units at a price of CAD$0.05 per unit, for gross proceeds of US$3.8 million. Please see the Company’s news release dated December 19, 2014 for further details of the Investment Agreement. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share of the Company at an exercise price of CAD $0.05 per share during the warrant’s five-year term. All securities issued in connection with this private placement are subject to a four-month hold period.
The Company has repaid the Polygon loans of CAD$200,000 and US$600,000 plus all accrued interest out of the private placement proceeds. The balance of the proceeds will be used for working capital purposes.
Polygon is a “Control Person” and “related party” of the Company (as defined by securities legislation) and now holds 109,502,499 common shares (78.9% of Caza’s issued and outstanding share capital) and 109,160,000 warrants.
Issuance of Shares to INECOSA
The Company has issued 7,060,000 common shares at a deemed value of CAD$0.05 per share (for a total deemed value of approximately US$300,000) to shareholders of Inversiones Ecologicas S.A. (“INECOSA”). The shares are subject to a four-month hold period.
The Company had entered into a property purchase agreement (the “Purchase Agreement”) with INECOSA with respect to the Company’s right to acquire a 100% interest in the Los Andes Gold Project. The Purchase Agreement, which amended and superseded an earlier option agreement, required the Company to finalize the purchase of the Los Andes Gold Project by issuing 7,060,000 shares to INECOSA and making a final payment of US$300,000 to INECOSA
shareholders upon the successful transfer of title to the Company of the Los Andes Gold Project (along with certain other mineral properties staked by INECOSA on behalf of the Company). Please refer to the Company’s news release of December 19, 2014 for further details of the Purchase Agreement.
Source: http://www.cazagold.com/