The Company is continuing with its private placement with EBRD originally announced January 8, 2014. Under the private placement, EBRD will purchase 16,666,000 common shares of the Company at $0.06 per share for gross proceeds of CA$999,960 pursuant to the first tranche subscription (the “First Tranche Subscription”) of the larger potential investment previously announced. Following completion of the First Tranche Subscription it is anticipated that EBRD will hold approximately 18.69% of the issued and outstanding common shares of the Company, taking into account the common shares expected to be issued in connection with the Shares for Debt Transaction.
Both of the foregoing transactions are subject to the approval of the TSX Venture Exchange (the “Exchange”). In addition to Exchange approval, the First Tranche Subscription remains subject to certain other conditions precedent, including completion of the Shares for Debt Transaction and the Company obtaining certain required government documentation related to its exploration activities in Mongolia.
Proceeds of the First Tranche Subscription are expected to be used to advance the Company”s exploration activities in Mongolia and provide working capital.
The Company also announces that it has granted to directors, officers, consultants and management of the Company, stock options (the “Options”) to purchase a total of 1,420,000 common shares at a price of $0.10 per common share. The Options are exercisable for a period of 5 years ending February 20th, 2019 and have been granted in accordance with the terms of the Company”s current stock option plan.
