/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
SERVICES/
VANCOUVER, July 29, 2013 /CNW/ - Kombat Copper Inc. (the "Company")
(TSX.V: KBT) has launched a private placement financing (the
"Offering") of up to 30,000,000 units (each, a "Unit"), each Unit being
comprised of one common share (a "Common Share") and one common share
purchase warrant (a "Warrant") at a purchase price of $0.10 per Unit
for gross proceeds up to $3,000,000. Each Warrant shall entitle the
holder thereof to acquire one Common Share at an exercise price of
$0.20 per common share at any time before the date that is three years
from the date of issue, subject to an acceleration provision whereby if
at any time after four months and one day from the closing of the
Offering, the Common Shares trade at $0.30 per share or higher on the
TSX Venture Exchange (on a volume weighted adjusted basis) for a period
of 30 days, the Company will have the right to accelerate the expiry
date of the Warrants to the date that is 30 days after the Company
issues a news release announcing that it has elected to exercise this
acceleration right.
The proceeds from the Offering will be used to fund site exploration on
the Company's mining and prospecting licenses in the Otavi
Mountainlands, Namibia and for general corporate purposes.
Forbes & Manhattan, Inc. ("Forbes") has committed to assisting in
raising gross proceeds for the Company of up to $2,000,000. Upon
successful completion of this portion of the Offering, and subject to
other conditions as set forth in an investment agreement between the
Company and Forbes, Forbes shall have the right to nominate two
individuals for appointment to the Company's Board of Directors,
expected to be Mr. Bill Nielsen and Mr. Mike Hoffman.
Mr. Nielsen is an accredited geologist with over 35 years of worldwide
mineral exploration and development experience. Most recently, he has
been working as a senior industry consultant to mining exploration
companies working with a variety of commodities in various countries
and geological environments. From 2003 to 2008, Mr. Nielsen was the
V.P. Exploration of Nevsun Resources Ltd., where he played a
significant role in the discovery of the Bisha gold-VMS deposit in
Eritrea. He has worked with the Forbes and Manhattan group since early
2010.
Mr. Hoffman is a professional mining engineer with over 25 years of
experience in mine operations, projects, engineering and corporate
development. He recently served in senior executive positions at
Crocodile Gold Corp., Goldcorp Inc., Desert Sun Mining Corp. and Yamana
Gold Inc. He also serves on the Board of Directors of Aberdeen
International Inc. and Coastal Gold Inc.
All securities issued will be subject to a hold period of four months
and one day. The Offering is subject to a number of conditions,
including, without limitation, receipt of all regulatory approvals.
Upon the closing of the Offering, Kombat may pay fees to eligible
finders in accordance with the policies of the TSX Venture Exchange in
cash, warrants or any combination thereof.
About Kombat Copper Inc.
Kombat Copper (TSX-V : KBT) is a publicly traded Canadian exploration
and development company with its core operations focused on copper
resources in Namibia, one of the world's most prospective copper
regions, where it has substantial assets in place with significant
exploration upside.
The Company holds an 80% interest in five mining licenses in the Otavi
Mountainlands, an area of Namibia particularly known for its high-grade
copper deposits. Within these licenses are three past-producing mines
including the Company's flagship property: the past-producing Kombat
Mine. The Kombat mine's extensive infrastructure includes an 800m
exploration shaft which was opened in 2006, three recently-operational
shafts, ramp systems, extensive underground workings, mine buildings, a
tailings facility, a mill and concentrator (replacement value est
+$100MM) all supported by the Company's local townsite. The Kombat
mine originally opened in 1962 and historically produced ~8.7 million
tonnes of ore grading 3.1% Cu and is linked to vital existing
infrastructure, including power, water, roads, and rail with close
proximity to the port of Walvis Bay and to one of only five
commercial-grade smelters in Africa located in Tsumeb, located 100 road
kilometers away from Kombat.
In addition to mining licenses, the Company holds an 80% interest in
five Exclusive Prospecting Licenses ("EPL's") covering an area of more
than 2200 km2. The EPL's are located also within the copper-rich Otavi
Mountainlands and are in close proximity to Tsumeb.
Cautionary Notes
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.
This news release may contain forward-looking statements. These
statements include statements regarding the proposed use of proceeds.
These statements are based on current expectations and assumptions that
are subject to risks and uncertainties. Actual results could differ
materially because of factors discussed in the management discussion
and analysis section of our interim and most recent annual financial
statements or other reports and filings with the TSX Venture Exchange
and applicable Canadian securities regulations. We do not assume any
obligation to update any forward-looking statements, except as required
by applicable laws.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The
securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "1933 Act"), or any
state securities laws and may not be offered or sold within the United
States or to, or for the account or benefit of U.S. persons (as defined
in Regulation S under the 1933 Act) absent such registration or an
applicable exemption from such registration requirements.
SOURCE: Kombat Copper Inc.
