Electra Stone Announces Formation of Jade Subsidiary
04.10.2016 | Accesswire
VANCOUVER, October 4, 2016 - Electra Stone Ltd. (TSX Venture: ELT) ("Electra") or ("the Company") is pleased to announce the formation of its wholly-owned subsidiary West Coast Jade Inc. ("WCJ"). WCJ will pursue marketing opportunities for BC jade and BC jade products in North American and Asian markets. As announced by the Company on August 25, 2016, Electra has negotiated an agreement through which it will be able to purchase up to 540,000 kilograms of carving and industrial grade jade from Quartz Creek Developments Ltd."All jade products sold by Electra will be marketed under the brand name "Vancouver Jade," Vancouver is a city we are proud of and a name that resonates with our Asian customer base," explained John Costigan, President and CEO of Electra.
The Company would also like to announce that it has arranged for a non-brokered private placement (the "Private Placement") of up to 20,000,000 units (the "Units") at a subscription price of $0.05 per Unit for gross proceeds of up to $1,000,000. Each Unit will consist of one common share and one full share purchase warrant. Each warrant will be exercisable into one additional common share (the "Warrant Share") of the Company at $0.075 per Warrant Share for a period of one year from closing of the Private Placement. The common shares issued or issuable pursuant to the Private Placement will be restricted from trading for a four month hold period in accordance with applicable securities laws and policies of the TSX Venture Exchange (the "Exchange"). Completion of the Private Placement is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the Exchange.
Finders fees may be payable in connection with the private placement.
The net proceeds of the Private Placement will be used to advance the Company's jade operations and for general and corporate purposes.
About Electra Stone
Electra Stone Ltd. is building a vertically integrated public Nephrite Jade mining, trading & marketing company. Electra is focused on international market growth and trade of Nephrite Jade from British Columbia into Asian markets with a specific focus on China.
For further information and sales enquires on Electra Stone Ltd. please visit www.electrastone.com
Or contact: Tyler Lowes at tyler@electrastone.com or call 604-620-8589.
On behalf of the Board of Directors,
"John Costigan"
President and Director
Forward Looking Statement: This document contains forward-looking statements. Forward –looking statements in this news release include that Electra will be able to purchase more or all of the 540,000 kilograms of jade regardless of its exclusive right and that we will be able to sell dimensional stone jade once purchased, we may be unable to complete the announced financing and use of proceeds. Forward information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Factors which may prevent the forward looking statements from coming to fruition include that QCM may not be able to produce 10,000 kilogram blocks to the approval of Electra. Electra may not be able to finance our plans, markets may not develop as expected, we may not be able to develop markets for dimensional or industrial jade and competitors may sell better or less expensive products and take our expected market share. Forward-looking information is provided as of the date hereof and is based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. We assume no responsibility to update, or revise them to reflect new events or circumstances, except as required by law. For a detailed list of risks and uncertainties as it relates to Electra Stone Ltd., please refer to the Company's 2015 financial statements filed with SEDAR.
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 news release.