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Lupaka Gold Enhances Short-Term Liquidity Position by $2.0 Million
VANCOUVER, British Columbia, March 07, 2019 (GLOBE NEWSWIRE) -- Lupaka Gold Corp. ("Lupaka Gold" or the “Company") (TSX-V: LPK, FRA: LQP) is providing additiona
About this update from Lupaka Gold Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, March 07, 2019 (GLOBE NEWSWIRE) -- Lupaka Gold Corp. (\"Lupaka Gold\" or the “Company\") (TSX-V: LPK, FRA: LQP) is providing additional details under the debt-for-share conversion application to the TSX Venture Exchange (“TSXV”), as well as an update with respect to the non-brokered private placement announced on January 28, 2019 and updated on February 14, 2019. Will Ansley, President and CEO stated, “The initiatives outlined today will improve the Company’s short-term liquidity position by a combined $2.0 million, a significant milestone and development for Lupaka.” Non-brokered Private Placement The Company has received subscription commitments of $665,000 with respect to the non-brokered private placement (the “Offering”, or “Private Placement”) announced on January 28, 2019 and updated on February 14, 2019. Each Unit will be priced at $0.06 and will consist of one common share of the Company and one transferable common share purchase warrant (each, a “Warrant”), with each Warrant entitling the holder to acquire one common share of the Company at a price of $0.10 for a period of 30 months from the date of the closing of the Offering. Proceeds from the Offering are intended to be used for general working capital purposes, including community and social relations initiatives in Peru. Liquidity Improvement Program As announced on February 14, 2019, the Company has implemented a program to significantly improve its liquidity position. Under the liquidity improvement program (“LIP”) the Company has reached agreements with several creditors to convert $873,971 in bridge loans and short-term accounts payable in Canada into 14,566,175 Units with the same terms as the Private Placement, with a deemed price of $0.06. Certain directors and officers of the Company are participating in the shares for debt conversion, totalling $156,250 converting to 2,604,166 Units. Furthermore, an additional $450,000 of current accounts payable have been restructured into long-term notes, conditionally payable based on achieving future production thresholds at Invicta. The closing of the Offering, and the issuance of the Common Shares in this shares-for-debt transaction is expected to occur on or before March 15, 2019 and is subject to receipt of approval of the TSXV. The common shares and Warrants issued ...