Business
Helio Resource Corp. to Raise a Minimum of $600,000, Acquire Two Projects in Peru, Shares for Debt Settlement and Provides Tanzania Update
VANCOUVER, British Columbia, May 15, 2019 (GLOBE NEWSWIRE) -- Helio Resource Corp (“Helio” or the “Company”; TSX-V: HRC) is pleased to announce that, subject to
About this update from Palamina Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, May 15, 2019 (GLOBE NEWSWIRE) -- Helio Resource Corp (“Helio” or the “Company”; TSX-V: HRC) is pleased to announce that, subject to TSX Venture Exchange (“TSXV”) approval, it has signed a Letter of Intent (LOI) on May 14, 2019, with Palamina Corp (TSX-V : PA) to acquire the Gaban gold project and the Tinka Iron Oxide Copper Gold project, both located in Peru. In conjunction with the acquisition, Helio plans to raise between $600,000 and $800,000 through a non-brokered private placement financing to cover the first phase of exploration on the properties and to cover initial working capital (together, with the other matters referenced herein, the “Transaction”). This is an arm’s length transaction and no finders fee is payable. Private Placement Terms The proposed financing will consist of up to 10,000,000 Units priced at 6c per Unit, whereby each Unit is comprised of one (1) common share of the Company and one half (1/2) warrant, whereby one full warrant entitles the holder to purchase one common share of the Company for 10c per common share at any time within 12 months of closing the financing. Project Acquisition Terms This acquisition of the Gaban and Tinka projects is subject to, in addition to other items, the Company raising a minimum of $600,000. Subject to successful completion of a 30-day due diligence period, and receipt of TSXV approval, Helio will issue to Palamina a total of 10 million common shares of the Company as follows: 5 Million shares immediately upon receipt of TSXV approval for the Transaction; and The balance of 5 million shares is to be issued within 24 months of TSXV approval of the Transaction, either through disinterested shareholder approval for such issuance or via the issuance of no greater that 19.9% of any future share issuance made by the Company. Palamina will retain a 2% Net Smelter Return (NSR) royalty on each property. Helio will have the right to purchase 50% of each royalty by making a cash payment of $1,000,000 to Palamina at any time prior to the commencement of commercial production. All shares issued will be subject to a 4 month plus one day hold period from the date of issuance. Helio will make an Advance Royalty Payment (ARP) of $25,000 to Palamina on the first and second anniversaries of closing the Transaction. The ARP will double every two years until ...