- Akorade Project
Castle Peak Mining Ltd. Announces Convertible Loan
Vancouver, B.C., June 27, 2014 - Castle Peak Mining Ltd. ("Castle Peak" or the "Company", TSX-V: CAP) announces that Randal Gindi and Allan Green (together, the "Lenders"), each of whom are directors of the Company, have each agreed to lend $50,000 to the Company (the "Loans"). The Loans will be unsecured and non-interest bearing. The principal amount of the Loans will mature on September 30, 2014, unless earlier converted into common shares of the Company at the closing price of the Company's common shares on the TSX Venture Exchange on the trading date prior to the conversion date.
The Loans, including the conversion of the principal amount of the Loans into Common Shares of the Company, is subject to the approval of the TSX Venture Exchange. The proceeds of the Loans will be utilized for working capital for the Company.
The Loans will constitute related party transactions under Multilateral Instrument 61-101 - Protection of Minority Holders in Special Transactions ("MI 61-101"), which has been adopted by the TSX Venture Exchange as Policy 5.9, because the Lenders are directors of the Company. The Company has determined that it is exempt from the minority approval and formal valuation requirements under MI 61-101 in respect of the Loans, relying on the exemptions found in sections 5.5(1)(a) and (b) and 5.7(1)(a) of MI 61-101. The principal amount of the Loans represents less than 5% of the Company's market capitalization as of June 20, 2014.
All of the disinterested directors of the Company, being all of the directors other than Mr. Randal Gindi and Mr. Allan Green, approved the Loans.
About Castle Peak
Castle Peak Mining Ltd. is a Canadian-based exploration company focused on advancing greenfields and early stage gold projects. The Company holds a strategic land package in the Ashanti belt adjacent to several producing gold mines in Ghana, West Africa. The Ashanti belt is known as one of the most prolific gold belts in the world, putting Ghana as the second largest gold producer in Africa with past production of >150 million ounces.
On behalf of the Board of Castle Peak Mining Ltd.:
President and Chief Executive Officer
Except for statements of historical fact, this news release contains certain 'forward-looking information' and 'forward-looking statements' within the meaning of applicable securities laws including statements regarding anticipated gold recoveries and future exploration and development at the Akorade Project. Such forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to vary materially from the anticipated results or events predicted in these forward-looking statements, including those risk factors identified in the Company's Annual MD&A filed under the Company's SEDAR profile. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this release. Except as required by applicable law, Castle Peak disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither 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.