New Destiny Signs Option Agreement With Central America Mining Corp. and Announces Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 30, 2014) - New Destiny Mining Corp. ("New Destiny" or the "Company") (TSX VENTURE:NED) announces that it has entered into an option agreement (the "Option Agreement") dated June 26, 2014 with Central America Mining Corp. ("CAMC") whereby CAMC granted the Company the option to acquire 80% of the issued and outstanding shares of Central America Mining Corporation S.A. ("CAMC SA") held by CAMC and therefore to indirectly earn an 80% interest in the 8,570.36 hectare Fuente De Oro property (the "Property") located in the Santa Domingo district of Nicaragua.
CAMC SA is recorded and beneficial owner of one hundred percent (100%) of the right, title and interest in and to the Property. Under terms of the Option Agreement, subject to TSX Venture Exchange (the "Exchange") approval, New Destiny has the option to earn a 80% interest in CAMC SA by completing $500,000 in exploration expenditures on the Property, making $250,000 in cash payments to CAMC and issuing CAMC 7,000,000 common shares over the next three years as follows:
| Date | Cash Payment | Share Issuance | Expenditure Requirement | ||
| Within five days from the date of Exchange approval of the Option Agreement (the "Acceptance Date") | $75,000 ($15,000 paid) | 3,000,000 Shares | $50,000 | ||
| On the date which is one year and a day from the Acceptance Date | $75,000 | 2,000,000 Shares | $200,000 | ||
| On the date which is two years from the Acceptance Date | 100,000 | 2,000,000 Shares | $250,000 | ||
| Total | $250,000 | 7,000,000 | $500,000 |
The Company also announces that, subject to regulatory approval, it will conduct a non-brokered private placement (the "Private Placement") of up to 7 million units (the "Units") at a price of $0.05 per Unit to raise gross proceeds of $350,000. Each Unit will consist of one common share of the Company and one transferable share purchase warrant (a "Warrant"). Each Warrant shall be exercisable to acquire one additional common share for a period of two years at a price of $0.08 per share. New Destiny will also pay a finder's fee in accordance with the policies of the Exchange and applicable securities legislation.
The Company will use the proceeds from the Private Placement to complete the NI 43-101 report on the Property, to make payments to CAMC required under the Option Agreement, and for general working capital.
All securities issued under the Private Placement are subject to a hold period expiring four months and one day after the closing date. Closing of the Private Placement is subject to Exchange approval.
ON BEHALF OF THE BOARD OF DIRECTORS
Robert L. Birmingham, President
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.