VANCOUVER, April 6, 2017 /CNW/ - INCA ONE GOLD CORP. (TSXV: IO, Frankfurt: SU9.F, SSEV: IOCL) ("Inca One" or the "Company") announces that it is undertaking a non-brokered private placement for gross proceeds of up to CAD$500,000 (the "Private Placement" or "Offering"). The Company intends to close this Private Placement imminently.
The Private Placement will consist of the issuance of 3,333,333 million units (the "Units") at a subscription price of CAD$0.15 per Unit. Each Unit will be comprised of one common share of the Company (a "Share") and one transferable common share purchase warrant (a "Warrant"). Each Warrant will be exercisable to purchase an additional Share of the Company at an exercise price of CAD$0.28 for a period of 36 months from the closing date ("Closing Date").
Inca One is pleased to announce that BWBI Corp. ("BWBI") will subscribe for 2,333,333 Units for gross proceeds of $350,000 in this Private Placement. BWBI will hold approximately 3.7% of the issued and outstanding common shares of the Company post Private Placement on an undiluted basis.
"I am excited to welcome BWBI as a valuable and strategic investor dedicated to our vision for growth," commented Inca One President and CEO Edward Kelly. "This new relationship will further enhance our market presence and allow us to accelerate growth initiatives. Inca One views their investment at this time as a vote of confidence in our company and we look forward to working together to further grow our business and build shareholder value."
BWBI's management further reports: "Inca One had a transformational year in which the Company re-structured its balance sheet and ramped up their milling facility to become one of the permitted companies for small scale miners in Peru. Under the leadership of President Pedro Pablo Kuczynski, "PPK" Peru has given needed comfort to foreign investment in the resource sector. As investors we feel comfortable in Peru, and look forward to assisting Inca One as they move into positive cash flow and have the ability to create significant shareholder value moving forward."
The proceeds from the Offering will be used for general working capital requirements. Insiders of the Company may subscribe for Units under the Private Placement. All securities issued in connection with the Private Placement will be subject to a statutory hold period of 4 months plus a day from the Closing Date in accordance with applicable securities legislation. No finder's fees will be paid in connection with this Offering. Closing of the Private Placement, is subject to the approval of the TSXV.
The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.
About Inca One
Inca One is a Canadian-based mineral processing company. The Company's activities consist of the production of gold and silver from the processing of purchased minerals located in Peru. Peru is the 6th largest producer of gold in the world and the Peruvian government estimates the small scale mining sector accounts for a significant portion of all Peruvian gold production, valued at approximately US$3 billion annually. The Company purchases its minerals from government registered small-scale mining producers from various regions and processes it at its Chala One milling facility located in Chala, Southern Peru.
About BWBI
BWBI is a private family-owned investment firm that specializes in private and public small to mid-market companies. BWBI, or one of its subsidiaries or affiliates, has been an early-stage shareholder in resource, pharmaceutical and technology sector companies that have successfully created over $7 billion of market capitalization and $3 billion of equity and debt capital raises.
