Standard Tolling Corp.: Update
White Rock, British Columbia (FSCwire) - Standard Tolling Corp. (TSX-V: TON, Frankfurt: GA0, “Standard Tolling” or the “Company”) provides the following update. As previously reported, Standard Tolling owes an aggregate of US$2,250,000 in principal plus accumulated interest to the holders of 2,250 ore purchase notes with a face value of US$1,000 each an aggregate (the “Ore Notes”) of which US$1,750,000 (the “Ore Purchase Account”) of the Ore Notes was segregated for the purpose of buying ore to feed Standard Tolling’s Peruvian subsidiary Minera La Quinua S.A.C (“MLQ” and the plant, the “MLQ Plant”).
As previously reported, prior to entering into an October 6, 2015 letter of intent (the “LOI”) with Inca One Gold Corp. (“Inca One”), MLQ purchased ore with proceeds from the Ore Purchase Account to stockpile (the “Ore Stockpile”) and process when the MLQ Plant was ready to be commissioned. Pursuant to the LOI, Standard Tolling and Inca One entered into a Loan and Mineral Advance Agreement (each as defined in the November 30, 2015 release) utilizing Ore Purchase Account funds for the purpose of generating income to service the interest on the Ore Notes and MLQ began shipping the Ore Stockpile to Inca One’s plant for processing.
During the due diligence period of the LOI, several significant issues connected with the long-term viability of permitting at the MLQ Plant came to light and on November 30, 2015 the LOI was terminated. Since then, the Board of Directors of Standard Tolling have been working to devise a solution to the Company’s financial difficulties, including ongoing discussions with Inca One respecting a potential asset purchase and debt assumption agreement. Among other things, any such agreement will require the acceptance and agreement of all of the Ore Note holders. There is no assurance that any agreement will be entered into with Inca One or any other person which will address Standard Tolling’s financial difficulties.
Preliminary discussions with certain of the Ore Note holders, has indicated that there are concerns regarding the debt assumption agreement that had been under discussion with Inca One. Accordingly, Standard Tolling has delivered notice to Inca One that all amounts outstanding to Standard Tolling are due and payable in accordance with the terms of the Loan and the Mineral Advance Agreement by the end of February 2016. Standard Tolling and Inca One intend to together negotiate repayment terms with the Ore Note holders in the first part of 2016 to reach the optimum resolution for repayment of the Ore Notes to the Ore Note holders.
The Board of Directors of Standard Tolling and management are investigating the steps and process and time needed to sell the MLQ plant, equipment, land to generate cash to repay the remaining creditors of the Company.
The Board of Directors of Standard Tolling has been unable to recruit a third director and as the Company has only two directors, the TSX Venture Exchange has notified the Company that unless a third director is appointed on or before January 4, 2016, that the Company will continue to not meet continued listing requirements of the TSX Venture Exchange and the Company understands that the trading of the shares of Standard Tolling will be suspended without further notice.
ON BEHALF OF THE BOARD
/s/ Doris Meyer
_______________________________________
Doris Meyer, Corporate Secretary
For further information please contact:
Tel: 604-536-2711 ext 6 for Doris Meyer
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/standard12232015.pdf
Source: Standard Tolling Corp. (TSX Venture:TON, FWB:GA0) http://www.standardtolling.com/s/Home.asp
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