Salazar Announces Delay Of Financing
VANCOUVER, BRITISH COLUMBIA - SALAZAR RESOURCES LTD. (TSX.V: SRL; FSE: CCG) (the “Company”) – Mr. Fredy Salazar, President and CEO announces that further to the Company’s news release of April 6, 2016, closing of the proposed US$1,050,000 unit private placement financing (the “Private Placement”) forming part of the Company’s recapitalization plan has been delayed until the Company and its lead investor, Resource Capital Fund VI L.P. (“RCF VI”), have resolved certain of the conditions precedent.
Under the recapitalization plan, in addition to the Private Placement, the Company is to sell a 2% net smelter returns royalty interest in its Curipamba project for US$4,750,000 (the “Royalty Sale”). In conjunction with and as a condition of the Private Placement and Royalty Sale the Company has negotiated agreements in principle with certain creditors, including arm’s length creditors as well as employees and directors, to settle unpaid debts (the “Debt Conversion”) including debt arising from cash previously advanced and for accrued and unpaid compensation.
Please refer to the Company’s news release of April 6, 2016 for further particulars in respect of the Private Placement and other aspects of the recapitalization plan.
About Resource Capital Funds
Resource Capital Funds (“RCF”) is a group of commonly managed private equity funds, established in 1998 with a mining sector specific investment mandate spanning all hard mineral commodities and geographic regions. Since inception, RCF has supported 148 mining companies, with projects located in 47 countries and across 29 commodities. Further information about RCF can be found on its website (www.resourcecapitalfunds.com).
RCF has a strong team of investment professionals, with wide ranging industry and technical expertise and a demonstrated history of investments in mining globally. RCF’s track record is based on its ability to pick technically and commercially compelling assets and support management to achieve desired outcomes whilst remaining throughout a source of patient capital. RCF aims to partner with companies to build strong, successful and sustainable businesses and in doing so strives to earn superior returns for all shareholders.
About Salazar Resources Limited
Salazar Resources Ltd. is a publicly-listed (TSX.V: SRL; FSE: CCG) mineral resource company engaged in the exploration and development of new highly-prospective areas in Ecuador. Led by a senior Ecuadorian management team and most notably by its namesake Fredy Salazar, this team has been instrumental in other major discoveries throughout Ecuador. Being based in Ecuador, thus having thorough knowledge of local human and environmental issues, gives the company a strategic advantage, enabling it to complete exploration at a rapid pace. With an excellent property portfolio (3 projects- 42,900 hectares), good geopolitical positioning and a number of strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador and throughout South America.
ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED
President & CEO
Salazar Resources Limited
For further information, please contact:
Salazar Resources Ltd.
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 news release.
This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. Forward-looking information herein includes, but is not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as the successful completion of the Additional Royalty Sale. Such forward-looking information is based on a number of material factors and assumptions, including that the Company will be able to satisfy the conditions precedent to closing of such transaction. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward- looking information except in accordance with applicable securities laws.