Standard Tolling Closes Second and Final Tranche of Equity Offering
White Rock, British Columbia (FSCwire) - Standard Tolling Corp. (TSX-V: TON, Frankfurt: GA0, “Standard Tolling” or the “Company”) announces it has closed the second and final tranche of the non-brokered private placement as announced March 11, 2015 (the “Equity Offering”). The Company issued 5,843,000 units at a price of $0.15 per unit in the second tranche for gross proceeds of $876,450. The Company raised total gross proceeds of $1,827,450, which includes an over-allotment of $327,450, from the issuance of a total of 12,182,999 units in this private placement.
Leonard Clough, CEO of the Company stated: “This equity raise will allow us to accelerate our capex optimization plan originally scheduled for later this year. Most notably, we have initiated a plan to fund a substation power upgrade and national grid access which will provide meaningful energy savings of approximately 75% per annum. The plant expansion is being managed internally by a management team that has overseen several construction projects, including the expansion of the Don Mario gold plant in Bolivia, from 600 TPD to 3,000 TPD. Our construction initiatives are being mindful of our future plans to expand beyond the initial 100 TPD capacity target, allowing for a less costly and more rapid expansion to our capacity goal of 350 TPD. Lastly, this additional equity will allow us to maintain our commitment to a strong balance sheet.”
Each unit comprises one common share and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one common share at a purchase price of $0.25 per share for a period of two years.
The Company paid aggregate finders’ fees of $142,116 and issued 947,439 non-transferable finder’s warrants, on the same terms as the Warrants in relation to this Equity Offering.
All securities issued in connection with the first tranche of the Equity Offering are subject to a hold period in Canada expiring on July 26, 2015 and all securities issued in connection with the second tranche of the Equity Offering are subject to a hold period in Canada expiring on August 1, 2015.
The net proceeds of the Equity Offering will be used to fund upgrades and operations of the Company’s toll milling plant in Peru and for general working capital purposes.
About Standard Tolling Corp.
Standard Tolling is currently constructing a 100 TPD custom tolling plant located in Huamachuco which will service the legal small mining communities of northern Peru. Under the progressive new formalization mandate, the Peruvian government has enacted legislation to curtail illegal mining by requiring all toll processing operations to purchase only compliant ores. This has created significant opportunity for well run, well funded operators to gain market share as older poorly capitalized players with poor technology are phased out.
ON BEHALF OF THE BOARD
“Len Clough”
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Mr. Len Clough, Chairman, President, CEO and Director
For further information please contact:
Tel: 866-222-5820 ext 101 for John Martin
Email: info@standardtolling.com
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 release.
This news release contains certain statements that may be deemed “forward-looking” statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur and include, without limitation, statements regarding the Company’s plans with respect to statements about the Company’s ability to fund and execute the proven ore processing business model outlined in this news release. Although Standard Tolling believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/standardtolling03312015.pdf
Source: Standard Tolling Corp. (TSX Venture:TON, FWB:GA0) http://www.standardtolling.com/s/Home.asp
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