A.B. Aterra Resources Ltd.

March 09, 2016 11:34 ET

A.B. Aterra Resources Acquires Common Shares of GB Minerals Ltd.

TORONTO, ONTARIO--(Marketwired - March 9, 2016) - A.B. Aterra Resources Ltd. ("Aterra Resources") announces that in connection with a private placement (the "Offering") of 67,854,547 common shares of GB Minerals Ltd. ("GB Minerals"), it has entered into a subscription agreement to, subject to certain closing conditions, subscribe for 12,285,455 common shares (the "Subscribed Shares") at a price of C$0.055 per share. The Subscribed Shares will represent approximately 2.5% of the outstanding common shares immediately upon the closing of the Offering. In addition to the Subscribed Shares, Aterra Resources owns 76,889,744 common shares (the "Owned Shares"), for an aggregate of 89,175,199 common shares, representing approximately 18.4% of the anticipated 485,779,888 issued and outstanding common shares immediately following the completion of the Offering.

Aterra Resources is also currently the holder of a convertible promissory note of GB Minerals dated July 16, 2015 (the "Promissory Note") in the principal amount of C$1,000,000 bearing interest at a rate of 4% per annum. The Promissory Note, together with any accrued and unpaid interest thereon, is convertible at any time at the option of Aterra Resources or GB Minerals into common shares at a conversion price of C$0.075 per share. Upon conversion of the principal amount of the Promissory Note (but none of the interest thereon), together with the Subscribed Shares and the Owned Shares, Aterra Resources would own 102,508,532 common shares, representing approximately 20.5% of the then outstanding common shares assuming no additional issuances of common shares prior to such conversion.

Aterra Resources is acquiring the Subscribed Shares for investment purposes and continues to monitor the business, prospects, financial condition and potential capital requirements of GB Minerals. Depending on its evaluation of these and other factors, Aterra Resources may from time to time in the future increase or decrease its ownership, control or direction over the common shares or other securities of GB Minerals through market transactions, private agreements, subscriptions from treasury or otherwise.

For further information, including a copy of the corresponding report filed with Canadian securities regulators, please see contact information below.

Contact Information

  • Mr. Lambros Kyriakides
    +357 2 500 1500

    A.B. Aterra Resources Ltd
    Themistokli Dervi, 3, Julia House
    P.C. 1066, Nicosia, Cyprus