Vancouver, British Columbia–(Newsfile Corp. – December 7, 2020) – Daura Capital Corp. (TSXV: DUR.P) (the “Company” or “Daura“), a capital pool company under the policies of the TSX Venture Exchange (the “TSXV“), is pleased to provide an update on the status of its proposed qualifying transaction (the “Qualifying Transaction“) with Estrella Gold S.A.C. (“Estrella“). Daura is also announcing the terms of a proposed bridge financing (the “Bridge Financing“) to be completed prior to the completion of the proposed Qualifying Transaction.
Daura has made its initial filing with the TSXV for conditional approval to the terms of the proposed Qualifying Transaction and the acquisition of Estrella. Daura is continuing to work diligently towards the completion of the proposed Qualifying Transaction under the policies of the TSXV.
Daura announced that it also intends to complete a non-brokered private placement (the “Bridge Financing“) of up to 1,666,667 common shares at a price of $0.15 per share for total gross proceeds of $250,000. Net proceeds from the Bridge Financing will be used to fund costs associated with completing the Qualifying Transaction, and to loan to Estrella US$115,000 to be used by Estrella to make an option payment due on a certain mineral concession forming part of Estrella’s mineral project located in north-central Peru. The loan to Estrella will be secured by the assets and property of Estrella, will bear interest at a rate of 10% per annum and will be repayable on or before June 30, 2021.
All securities issued under the Bridge Financing will be subject to hold periods expiring four months and one day after the date of issuance. Additional restrictions may apply under the rules of the TSXV and applicable securities laws.
This news release does not constitute an offer to sell, or solicitation of an offer to buy, nor will there be any sale of any of the securities offered in any jurisdiction where such offer, solicitation or sale would be unlawful, including the United States of America. The securities being offered as part of the Bridge Financing have not been, and will not be, registered under the U.S. Securities Act, or any state securities laws, and accordingly may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and any applicable state securities laws, or pursuant to available exemptions therefrom.
Closing of the Bridge Financing and the loan to Estrella is subject to the approval of the TSXV.
For further information please contact:
Daura Capital Corp.
543 Granville, Suite 501
Vancouver BC V6C 1X8
William T.P. Tsang CFO and Secretary
Mark D. Sumner CEO and Director
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.
Information set forth in this news release contains forward-looking statements. These statements reflect management’s current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. Daura cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Daura’s control. Such factors include, among other things: risks and uncertainties relating to Daura’s ability to complete the proposed Qualifying Transaction; and other risks and uncertainties. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Daura undertakes no obligation to publicly update or revise forward-looking information.
Completion of the transaction is subject to conditions, including but not limited to, TSXV acceptance and if applicable pursuant to TSXV requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
A halt in trading shall remain in place until after the Qualifying Transaction is completed or such time that acceptable documentation is filed with the TSX Venture Exchange.
Not for Distribution to US Newswire Services or Dissemination in the United States
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/69680