AsiaBaseMetals Inc. Announces Closing of Flow-Through and Non-Flow-Through Private Placement
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VANCOUVER, British Columbia, Aug. 27, 2018 (GLOBE NEWSWIRE) -- AsiaBaseMetals Inc. (the "Company") (TSX-V: "ABZ") is pleased to announce that it has completed its non-brokered private placement (the "Private Placement") for aggregate proceeds of C$77,520. On August 24, 2018, the Company issued 185,000 flow-through common shares (each, a "Flow-Through Share") at a price of $0.285 per Flow-Through Share, and 87,000 non-flow-through common shares (each, a "Non-Flow-Through Share") at a price of $0.285 per Non-Flow-Through Share.
The proceeds from the Private Placement will be used for the exploration work on the Gnome Zinc Project and for general corporate and working capital purposes. The Private Placement is subject to acceptance by the TSX Venture Exchange.
All securities issued in connection with the Private Placement are subject to a four month hold period that will expire on December 25, 2018.
For more information please email info@asiabasemetals.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.
Multilateral Instrument 61-101
Under the Private Placement, the following insiders of the Company purchased common shares: Raj Chowdhry, President, CEO and a director of the Company, purchased 137,500 Flow-Through Shares under the Private Placement; Henry Park, a director of the Company, purchased 87,000 Non-Flow-Through Shares through a company controlled by Mr. Park; and Jason Sutherland, a director of the Company, purchased 20,000 Flow-Through Shares under the Private Placement. Their participation is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities to be distributed in the Private Placement nor the consideration to be received for those securities, in so far as the Private Placement involves the insiders, exceeds $2,500,000. The Company did not file a material change report more than 21 days before the expected closing of the Private Placement as the details of the Private Placement and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons.
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release may constitute “forward-looking information” within the meaning of Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks include, among others, financing risks, delays in obtaining or inability to obtain required regulatory approvals and the use of the proceeds from the Private Placement. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Contact Information AsiaBaseMetals Inc. Raj Chowdhry, Chief Executive Officer Email: info@asiabasemetals.com