TORONTO, April 6, 2016 /CNW/- Jubilee Gold
Exploration Ltd. (TSX.V: JUB) (the "Corporation") is
pleased to announce that it has entered into a loan agreement with
Jeffrey Becker providing for the
terms and conditions pursuant to which Jeffrey Becker (the "Lender") will loan
to the Corporation the principal amount of $300,000 (the "Loan") to be evidenced by a
promissory note (the "Note"). The Loan is for a term of 5
years and is payable on demand after one year. The Loan bears an
interest in the amount of 1% per annum payable yearly on the date
of each annual anniversary. The Loan is convertible into Class A
Common Shares of the Corporation at any time until the date of
expiry of the Loan term. The terms and conditions of the Loan will
provide that accrued interest can also be paid through the issuance
of Class A Common Shares. The conversion rate will be determined
based on a price per Class A Common Share that is not less than the
Market Price of the Class A Common Shares at the time of the
conversion of the Loan or at the time the accrued interest is
payable, all subject to TSX Venture Exchange (the
"Exchange") acceptance. If at the time of conversion, the
Corporation is no longer a publicly traded reporting issuer, the
conversion price shall be $0.10 for
any amount of principal or accrued interest to be converted.
The Lender is a "control person" and "related party" of the
Corporation and currently beneficially owns and controls 6,853,915
Class A Common Shares of the Corporation being 87.52% of the issued
and outstanding share capital. The Lender is a "related party" of
the Corporation pursuant to the Exchange policies, as Mr. Becker is
the President, Chief Executive Officer and director of the
Corporation. As such the transaction constitutes a "related party
transaction". The Corporation is relying on exemptions from
the formal valuation and minority approval requirements that apply
to related party transactions.
The proceeds of the Loan will be used to cover rent, salaries
and administrative costs to support the operations of the
Corporation for the ensuing year.
The Loan to the Lender will be subject to the approval of the
Exchange.
The Loan, and the terms of the Note were approved by the board
of directors of the Company, other than Mr. Becker, who declared
his interest as the Lender and has abstained from voting with
respect to the Loan and the Note. The board of directors believe
that the Loan is in the best interests of the Corporation.
This news release contains forward-looking statements, which
address future events and conditions, which are subject to various
risks and uncertainties. The Corporation's actual results, programs
and financial position could differ materially from those
anticipated in such forward-looking statements as a result of
numerous factors, some of which may be beyond the Corporation's
control. These factors include: the availability of funds; the
timing and content of work programs; results of exploration
activities and development of mineral properties, the
interpretation of drilling results and other geological data, the
uncertainties of resource and reserve estimations, receipt and
security of mineral property titles; project cost overruns or
unanticipated costs and expenses, fluctuations in metal prices;
currency fluctuations; and general market and industry
conditions.
Forward-looking statements are based on the expectations and
opinions of the Corporation's management on the date the statements
are made. The assumptions used in the preparation of such
statements, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Jubilee Gold Exploration Ltd.
