Antioquia Gold Announces Corporate Advisory Agreement With Westmount Capital
10 January 2014 - 4:01AM
Marketwired
Antioquia Gold Announces Corporate Advisory Agreement With
Westmount Capital
CALGARY, ALBERTA--(Marketwired - Jan 9, 2014) - Antioquia Gold
Inc. ('Antioquia Gold" or the "Company") (TSX-VENTURE:AGD)
(OTCQX:AGDXF) announces that it has entered in a Corporate Advisory
Agreement with Westmount Capital ("Westmount") seeking to finance
the further development of its Cisneros Project.
Westmount is a Swiss
Investor and Public Relations Advisory Firm and will accompany
Antioquia Gold in its path to go into production at its Cisneros
Project in the Province of Antioquia in Colombia by assisting
management of the Company in its financing endeavors. Westmount
will assist management in the planning and execution of a series of
private placements (the "Gold Loan Private Placement") of
debentures (the "Debentures") over the next 12 months that will
fund the current (next 18-24 months) project development
that has an estimated budget of US$20 million.
The first tranche of
the Gold Loan Private Placement will be for up to US$6 million and
is expected to close on, or about February 28, 2014. Successive and
ongoing closings could take place under the Gold Loan Private
Placement over the next 12 months, up to a maximum of US$20
million. Such amount is open and will be determined by management
of the Company as the project evolves into successive construction
phases.
The Debentures
issued under the Gold Loan Private Placement will have a maturity
date of five years following the date of issuance of the Debentures
and will rank pari passu in right of payment of principal and
interest to all senior obligations of the Company. The Debentures
will bear interest at the rate of 8% per annum and shall be payable
in cash. The Corporation shall reimburse the principal amount of
the Debentures twice yearly, beginning 24 months from the date of
issuance, by the payment of, at the option of Debenture holder: (i)
cash; or (ii) gold ingots produced from the mine at Cisneros either
at a price per ounce of gold equal to the spot market price of gold
(second London Fixing) on the date of each payment, minus 10%, or
at maximum price US$1,350 per ounce, whichever is the lowest. For
the first 18 months, Debenture holders will have the option to
convert up to 10% of the principal amount of the Debenture in to
common shares of the Company at a price of $0.15 per share.
For the services
performed under the Corporate Advisory Agreement, Westmount will
receive a monthly retainer of US$7,500 per month and will be
entitled to a fee of up to 8% of the amount received by Antioquia
Gold under the Gold Loan Private Placement, of which 4% will be
payable in cash and 4% will be invested by Westmount in the Gold
Loan Placement.
Antioquia Gold and
Westmount agree to comply with all applicable Canadian, US, and
international securities laws in connection with the terms of the
Corporate Advisory Agreement. The completion of the Gold Loan
Private Placement is subject to TSX Venture Exchange acceptance and
other regulatory approval.
Antioquia Gold
intends to use the funds obtained under the first tranche of the
Gold Loan Private Placement for the following key
projects/studies:
- Final Feasibility Study, including the following:
- Geotechnical and Hydrological studies;
- Design stage plans and complementary studies for Process Plant;
and
- Detailed mine plan for 1st year operation and Feasibility level
design for next 5 years;
- Acquisition of key land positions in Cisneros;
- Initiate construction of Guaico Tunnel; and
- Working Capital for ongoing operations.
Continuing funds
after this initial tranche, will go to initial construction of the
process plant, acquisition of mining equipment and building
necessary infrastructure to support the project in its production
capacity of ~35,000 oz/yr. It is anticipated that further cash
requirements after this will come from operations.
About Antioquia
Gold Inc.
Antioquia Gold
has been exploring for precious metals in Colombia since 2007 where
its current holdings are close to 40,000 hectares located
throughout Colombia. Antioquia's principal asset, which is being
actively explored, is its 5,630 hectare Cisneros Project, located
55 km northeast of Medellin in the Department of Antioquia,
Colombia. At the Cisneros Project the Company has conducted
extensive geochemical and geophysical programs over the entire
property and has identified to date eleven (11) exploration z ones.
On the original discovery zone it has drilled over 45,000 metres
and is well versed in the understanding of the deposit type and the
project's path to resource definition and production.
For further
information on Antioquia Gold Inc., visit our website at
www.antioquiagoldinc.com.
Neither the 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.
Forward-Looking
Statements:
This news
release contains certain forward-looking statements, including the
closing of the financing and any plans regarding the expected used
of proceeds from the financing. Forward-looking statements are
based on management's current assumptions and are subject to risks
and uncertainties. There can be no assurance that any
forward-looking statement will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such information due to a number of factors beyond
the Company's control. These assumptions, risks and uncertainties
include, among other things, management's assumptions about
government permitting, equipment procurement and the availability
of the necessary consultants and capital, as well as the risks of
delay in any of these activities and the risks inherent in
Antioquia Gold's operations, including the risks that the Company
may not find any minerals in commercially feasible quantity or
raise enough money to continue to fund its exploration plans. These
and other risks are described in the Company's public disclosure
documents filed on the SEDAR website maintained by the Canadian
Securities Administrators. The Company does not undertake to update
any forward-looking information except as may be required by
applicable securities laws.
Antioquia Gold Inc.www.antioquiagoldinc.com
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