The Conversation (0)
Castle Peak Mining (TSXV:CAP) has reached an agreement, in principle, with Grizal Enterprises Ltd. and Candel and Partners SAS on a strategic investment. Grizal, Candel and/or their respective affiliates would form a newly-incorporated entity which would acquire 40,000,000 units of the Company at an issue price of $0.05 per Unit, for gross proceeds of $2,000,000.
As quoted in the press release:
Each Unit will consist of one common share (a “Unit Share”) and one transferable share purchase warrant (a “New Warrant”). Each New Warrant will allow the holder thereof to purchase one additional common share (a “Warrant Share”) of the Company at a price of $0.10 per Warrant Share for a period of 36 months from the closing of the Investment, subject to adjustment in certain stated events. The securities to be issued upon closing of the Investment will be subject to customary securities legislation hold periods.
The Investment is subject to several conditions precedent, including the receipt of conditional approval from the TSX Venture Exchange (the “Exchange” or “TSXV”), the receipt of disinterested shareholder approval pursuant to the requirements of Multilateral Instrument 61-101 (“MI 61-101″), the receipt of disinterested shareholder approval with respect to the Subscriber as a new “Control Person” (as such term is defined in the TSXV’s policies), the receipt of any other necessary approvals or consents, as well as the Subscriber and the Company entering into a mutually satisfactory final agreement.
The terms of the agreement in principle would provide the Subscriber with the right to nominate one individual to be appointed to the Board of Directors of Castle Peak after closing of the Investment. In addition, conditional upon the closing of the Investment, Grizal, Candel and their respective affiliates have agreed to cancel their existing warrant holdings in the Company.
Click here to read the Castle Peak Mining (TSXV:CAP) press release
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