Business
Salazar Announces Closing of Private Placement and Debt Settlement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 27, 2016) - Salazar Resources Ltd. (TSX VENTURE:SRL)(FRANKFURT:CCG) (the "Company") - Mr. Fredy Salazar, Presi
About this update from Salazar Resources Limited
[{"type":"text","content":"VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 27, 2016) - Salazar Resources Ltd. (TSX VENTURE:SRL)(FRANKFURT:CCG) (the \"Company\") - Mr. Fredy Salazar, President and CEO is pleased to announce that further to the Company's news release of April 6, 2016, the Company has completed a US$1,050,000 private placement (the \"Private Placement\") and debt settlement, two elements of its previously announced recapitalization plan. Pursuant to the Private Placement, the Company sold 22,293,398 units (\"Units\") to arm's length financiers to raise US$1,050,000. The Units were sold at a price of Cdn$0.06, with each Unit being comprised of a common share of the Company (a \"Unit Share\") and a half warrant, with each full warrant (a \"Warrant\") entitling the holder to purchase an additional common share of the Company at a price of Cdn$0.12 (the \"Warrant Exercise Price\") for a period of two years from closing. The Private Placement was led by Resource Capital Fund VI L.P. (\"RCF VI\") which subscribed for US$820,000 of the Private Placement. Pursuant to the Company's subscription agreement with RCF VI, the parties are to determine a mutually-acceptable work program within three months of closing of the Private Placement and, if a work program, cannot be settled within such period, RCF VI will be issued an additional Warrant for each whole Warrant issued in the Private Placement and the Warrant Exercise Price for RCF VI's Warrants will be reduced to Cdn$0.069. The Company has also settled certain of its outstanding debt with existing creditors by way of the issuance of 14,277,483 Units to such creditors (the \"Debt Conversion Units\") at a deemed price of Cdn$0.06 per Debt Conversion Unit. The debt settled by the issuance of these Debt Conversion Units were in respect of cash advances the Company received from both arm's length parties and certain insiders to assist the Company with maintaining operations and paying all core costs including prior years' tenure payments on its properties. A further 8,484,847 Debt Conversion Units are to be issued in settlement of debt concurrently with the first closing of the royalty sale referred to below. In addition, the Company has issued a further 5,600,132 common shares (the \"Debt Conversion Shares\") to both insiders and non-insiders in settlement of accrued and unpaid compensation of US$258,7...