Cash Minerals Ltd.
TSX VENTURE : CHX

Cash Minerals Ltd.

October 19, 2009 08:30 ET

Cash Minerals Ltd. Announces $2.0 Million Debt Financing

TORONTO, ONTARIO--(Marketwire - Oct. 19, 2009) -

NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES

Cash Minerals Ltd. ("Cash" or the "Company") (TSX VENTURE:CHX) announces a financing involving the issuance of promissory notes (the "Notes") in an aggregate principal amount of $2,000,000, subject to regulatory approval. Amounts outstanding under the Notes shall accrue interest at a rate of 12% per year, compounded and payable semi-annually, and shall be outstanding for a period of two years from the date of issue. At the option of the Company, any portion of the Notes may be repaid without early repayment penalties.

The proceeds from the Notes will be used to settle outstanding liabilities, to fund limited exploration on its properties and for working capital expenses as they occur.

The Company is reviewing its strategic alternatives. Strategic alternatives may include, among other things, strategic acquisitions, asset divestitures, operating partnerships or identifying additional capital sources. There is no assurance that this process will result in any changes to the Company's current strategic direction. The Company has decided not to pursue its previously announced private placement financing (See Press Releases dated August 12, 2009 and August 5, 2009) at this time.

Forward-looking Information

Statements in this release that are not historical facts are "forward-looking information" within the meaning of applicable securities law. Certain information in this news release including the board's assessment of future plans and operations, the ability of the Company to complete the debt financing, the proposed use of proceeds, and the Company's plans regarding the settlement of outstanding debts may constitute forward-looking information. Such information necessarily involves risks including, without limitation, risks associated with inability to attract required financing at attractive prices, and delays resulting from or inability to obtain required regulatory approvals. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking information".

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.

Contact Information

  • Cash Minerals Ltd.
    Greg Duras
    President and CEO
    (416) 861-5801
    (416) 861-8165 (FAX)
    Email: info@cashminerals.com