Vancouver, B.C. - West Melville Metals Inc. (WMM: TSX-V) (“West Melville” or “the Company”) January 27, 2016, announces it has entered into a non-convertible loan agreement (the “Loan Agreement”) with John Robins, GRF Consulting Corp. and Flotsam Cove Holdings Ltd. (the “Lenders”), which Loan Agreement has been reviewed and approved by the Company’s independent directors, in order to meet short-term working capital commitments. Pursuant to the Loan Agreement, the Lenders will advance to the Company the aggregate principal amount of $90,000 ($30,000 per Lender) (the “Loan”). The Loan bears interest at a rate of 8% per annum calculated daily in arrears and is payable on demand on or after the first anniversary of the closing date of the Loan.
In consideration for the Loan, the Company will issue an aggregate of 360,000 Common Shares (the “Bonus Shares”) to the Lenders as a bonus (120,000 Bonus Shares per Lender) at a deemed price of $0.05 per Bonus Share.
The Loan and the issuance of the Bonus Shares are subject to acceptance for filing by the TSX Venture Exchange.
Further to its news release dated November 18, 2015, the Company is proceeding with the proposed share consolidation on a basis of four pre-consolidation shares for one post-consolidation share (the “Consolidation”). There will be no name change in conjunction with the Consolidation.
Management and the Board of Directors believe that the Consolidation is in the best interests of the Company and its shareholders, and that a successful completion of the Consolidation would allow the Company important flexibility to amend its capital structure and complete future financings. Each Common Share outstanding after the Consolidation will be entitled to one vote and will be fully paid and non-assessable.
Under the terms of the Consolidation, no fractional Common Shares will be issued as a result of the Consolidation as any fractional shares created as a result of the Consolidation will be rounded up or down to the nearest whole number. There are currently 5,260,545 Common Shares issued and outstanding. Following the Consolidation, there will be approximately 1,315,136 Common Shares issued and outstanding, subject to treatment of fractional post-Consolidation Common Shares.
The Consolidation is subject to acceptance for filing by the TSX Venture Exchange.
About West Melville Metals Inc.
West Melville is a specialty metals exploration company working to advance the Isortoq iron-titaniumvanadium project in Greenland. The Company has assembled an experienced management team with a track record of discovery success and a Board of Directors with expertise covering the essential fields of geology, engineering and finance. The Isortoq Project offers a combination of low geological risk with significant upside potential in the high value specialty metal sector.
On behalf of the Board of Directors
Rory O. Moore, Ph.D.
President and CEO
West Melville Metals Inc.
For further information about West Melville Metals Inc. or this news release, please visit our website at www.westmelville.com or contact Investor Relations 604-682-4750, or by email at email@example.com.
Forward Looking Statement Cautions: This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to, among other things, the Loan and the Consolidation. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements the risk that the Company will not be able to raise sufficient funds to carry out its business plans, and regulatory or legal changes that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.
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 release.