AsiaBaseMetals Inc. Announces Closing of Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 13, 2016) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
AsiaBaseMetals Inc. (the "Company") (TSX VENTURE:ABZ) is pleased to announce that it has completed its previously announced non-brokered private placement for aggregate proceeds of $250,000. The Company issued 5,000,000 units at a price of $0.05 per unit. Each unit is comprised of one common share and one share purchase warrant, with each warrant exercisable for five years to purchase one additional common share at a price of $0.05.
The proceeds from the private placement will be used for general working capital and repayment of the loan announced on March 23, 2016.
All securities issued in connection with the private placement are subject to a four month hold period that will expire on August 13, 2016.
Raj Chowdhry, a director and officer of the Company, purchased 4,250,000 units, and Bryce Clark, a director of the Company, purchased 100,000 units under the private placement. Their participation is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any securities issued to nor the consideration paid by such persons exceeded $2,500,000. The Company did not file a material change report more than 21 days before the expected closing of the private placement as the details of the private placement and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons.
Early Warning Disclosure
Mr. Chowdhry acquired ownership of 4,250,000 units in the private placement. Prior to the private placement, Mr. Chowdhry held 892,205 common shares, which represented approximately 8.77% of the issued and outstanding shares of the Company, and 250,000 share purchase warrants. After giving effect to the private placement, Mr. Chowdhry beneficially owns and controls a total of 5,142,205 common shares and 4,500,000 share purchase warrants. These securities represent 33.89% of the Company's issued and outstanding shares on a non-diluted basis or 50.95% of the Company's issued and outstanding shares on a partially-diluted basis assuming exercise of Mr. Chowdhry's warrants only. Mr. Chowdhry acquired the units for investment purposes. Mr. Chowdhry intends to evaluate his investment in the Company and to increase or decrease his shareholdings from time to time as he may determine appropriate. A copy of the early warning report being filed by Mr. Chowdhry may be obtained by contacting Mr. Chowdhry at (604) 765 - 2030.
For more information please email info@asiabasemetals.com.
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