Newlox Gold Closes First Tranche of a Private Placement
Vancouver, BC, May 31, 2016 – Newlox Gold Ventures Corp. (“Newlox” or the “Company”) (CSE: LUX) is pleased to announce it has raised $181,718.95 through the closing of the first tranche (the “First Tranche”) of the private placement announced on 12 April 2016. The First Tranche closing consists of the issuance of 3,634,379 common shares and 3,634,379 share purchase warrants.
Newlox announced its intention to raise up to $300,000 through a private placement as well as its intention to consolidate its share capital on approximately a 4:1 basis at its next shareholder meeting. Lock-up agreements have been signed with Company shareholders and majority shareholder support has been obtained.
The proposed private placement (the “Private Placement”) will raise up to $300,000 through the issuance of up to 6,000,000 pre-consolidated (1,537,486 post-consolidated) Newlox Shares ($0.20 per post-consolidated share) and 6,000,000 share purchase warrants (“Warrants”) at a price of $0.05 per unit (“Unit”) prior to closing of the Acquisition.
Each Warrant is non-transferrable and entitles the holder to purchase an additional pre-consolidated Newlox common share for $0.05 in the first 12 months, $0.10 between month 13 and 24 and $0.15 between months 25 and 36 ($0.20, $0.40, and $0.60 respectively post-consolidation). All unexercised warrants shall expire after a term of 3 years.
In connection with the closing of the First Tranche, the Company will pay finders’ fees totaling $4,725.00 as well as issue 94,500 compensation units on the same terms as the Private Placement.
Four insiders of the Company also participated in the First Tranche including two members of the executive team. In particular, more than $50,000 of the funds advanced by an insider of the Company has already been deployed in operations. Together, Company insiders subscribed for 2,284,379 Units of the First Tranche.
The proceeds of this Private Placement will be allocated to general administrative working capital and operations in Latin America as well as costs associated with the proposed acquisition of the assets of Cordillera Gold (announced 12 April 2016). A portion of the proceeds will be loaned to Cordillera and forgiven upon closing of the transaction.
The Company intends to close the second tranche of this Private Placement by June 14th, 2016.
Newlox Gold Ventures Corp.
Newlox Gold Ventures Corp. is an environmental remediation company recovering contaminants and residual precious metals from historical waste left behind over more than a century of inefficient artisanal and small-scale mining in Latin America. The Company is not exploring or mining and does not own any concessions. This approach eliminates the conventional, time and capital intensive, process of exploration and mining.
Newlox collaborates with the Norman B. Keevil Institute of Mining Engineering at the University of British Columbia to develop systems which are perfectly suited to process artisanal tailings material while requiring minimal capital investment and delivering an expedited path to commercial operation.
This approach eliminates the conventional, time and capital intensive, processes that encumber traditional metals producing companies and puts Newlox on the fast-track to success. Not only does Newlox bypass the lengthy exploration stage but, by focusing on artisanal tailings, eliminates the mining, crushing, and majority of grinding steps which represent the most expensive parts of a typical precious metals operation.
With the R&D complete and the Company’s first processing plant constructed, Newlox is poised to achieve highly satisfactory commercial operations in the near term.
Once the first plant achieves steady state operation, measured expansion in other prospective, targeted locations in Columbia and Nicaragua will follow.
Newlox announced its intention to acquire the assets of Cordillera Gold Ltd. (“Cordillera”) on April 12, 2016. Cordillera, engages in the acquisition, exploration, and development of gold mineral resource properties in Colombia. Cordillera has rights to certain mineral concessions, access to historical artisanal tailings and toll milling opportunities in the Antioquia Batholith region of Colombia.
The acquisition of two valuable mining leases in Colombia will allow Newlox’s reclamation processing system to be deployed rapidly in a new market. Active and significant historical artisanal mining in the area is expected to support Newlox’s tailor-made processing system.
Neither Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release).
Scott Jobin-Bevans, Ph.D., P.Geo., is a “Qualified Person” within the meaning of National Instrument 43-101, and has reviewed the contents of this News Release.
On Behalf of the Board, Newlox Gold Ventures Corp.
Dr. Scott Jobin-Bevans, President, CEO &, Director
Telephone: +1 647 405 3632
Rob Fia, Managing Director
Telephone: +1 416 722 4994
For a PDF file of this news release, click here.