TORONTO, ONTARIO--(Marketwired - Aug. 30, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Duncan Park Holdings Corporation (TSX VENTURE:DPH) (OTCQX:DCNPF) announced today that it has completed its previously announced shares-for-debt transaction ("Shares-for-Debt Transaction") whereby the Company issued 4,413,300 common shares at a price of $0.05 per share in full satisfaction of certain loans totalling $220,665 (included accrued interest of $5,665) made to the Company by two insiders.
The Company also announced today that it has issued 7,500,000 common shares at a price of $0.01 per share pursuant to its previously announced non-brokered private placement (the "Private Placement").
The Private Placement was priced in reliance of the temporary relief measures established by the TSX Venture Exchange. The principal purpose of the proceeds of the Private Placement is to pay the final $75,000 property payment to complete the earn-in on the McManus property and to provide working capital to maintain or preserve Duncan Park's existing operations, activities and assets.
In the event that the Company completes further tranches of the Private Placement, it anticipates that the proceeds from the Private Placement will be used as follows (based on the maximum offering of up to $200,000):
| |
|
Use of Proceeds |
|
Amount |
| 1. |
|
Final McManus property payment |
|
$ |
75,000 |
| 2. |
|
Accounts payable |
|
|
56,392 |
| 3. |
|
Estimated additional property related costs (transfer and registration of title) |
|
|
10,000 |
| 4. |
|
Estimated regulatory compliance, legal and administrative costs to year-end |
|
|
39,900 |
| 5. |
|
Working Capital |
|
|
18,708 |
| |
|
Total |
|
$ |
200,000 |
Insiders of the Company subscribed for $50,000 of shares. The securities issued pursuant to the Shares-for-Debt Transaction and Private Placement are subject to a four-month hold period. The transactions were approved by the non-interested directors of the Company. A material change report in respect of the transactions will be filed on SEDAR in accordance with applicable securities law. The report could not be filed at least 21 days prior to closing as material information concerning the transaction was not then known by the Company.
About Duncan Park
Duncan Park is a Toronto-based mineral exploration company exploring for gold and other precious metals in Ontario's prolific Red Lake gold mining district.
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to Duncan Park's private placement transaction and use of proceeds. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Duncan Park to be materially different from those expressed or implied by such forward-looking information, including risks related to private placements, such as market conditions and obtaining necessary financing and requisite approvals, risks associated with the exploration, development and mining industry such as economic factors, future commodity prices, changes in foreign exchange and interest rates, government regulation, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with exploration and development activities, availability of skilled labour and equipment, the speculative nature of gold exploration and development, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Duncan Park's management's discussion and analysis for the period ended May 31, 2013, available on www.sedar.com. Although Duncan Park has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Duncan Park does not undertake to update any forward-looking information contained herein, except in accordance with applicable securities laws.