Anconia Resources Corp.
TSX VENTURE : ARA

Anconia Resources Corp.

April 17, 2014 08:15 ET

Anconia Closes First Tranche of Private Placement

TORONTO, ONTARIO--(Marketwired - April 17, 2014) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Anconia Resources Corp. (TSX VENTURE:ARA) ("Anconia" or the "Company") is pleased to announce the closing of the first tranche of its previously announced non-brokered private placement offering (the "Offering") (see the Company's news release dated April 2, 2014) issuing 525,000 units ("Units") at $0.06 per Unit and 3,000,000 flow-through units ("Flow-Through Units") at $0.075 per Flow-Through Unit, for aggregate gross proceeds of $256,500.

Each Unit consists of one common share of the Company and one-half of one common share purchase warrant (a "Unit Warrant"). Each whole Unit Warrant entitles the holder to purchase one common share of the Company at a price of $0.08 per share for a period of 18 months following the date of issuance.

Each Flow-Through Unit consists of one common share of the Company issued on a 'flow-though' basis and one-half of one common share purchase warrant (a "FT Warrant"). Each whole FT Warrant entitles the holder to purchase one common share of the Company at a price of $0.10 per share for a period of 18 months following the date of issuance.

The aggregate proceeds raised under the Offering will be used, among other things, to advance the Company's projects and for general working capital purposes. Proceeds from the sale of the Flow-Through Units will be used for Canadian Exploration Expenses on the Company's properties.

All of the securities issued under the first tranche of the Offering are subject to a statutory hold period in Canada expiring on August 17, 2014.

As part of the Offering, directors and officers of Anconia directly and indirectly subscribed for an aggregate of 525,000 Units and 1,000,000 Flow-Through Units. In addition, Bernard Sherman, an existing shareholder of the Company beneficially owning or controlling, directly or indirectly, greater than 10% of the issued and outstanding common shares of the Company, subscribed for 2,000,000 Flow-Through Units. Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the issuance of Units and Flow-Through Units to the directors and to the above-noted insider of Anconia constitute "related party transactions". The Company is exempt from obtaining both a formal valuation and minority shareholder approval in connection with the issuance of the Units and Flow-Through Units to the directors and insider because neither the fair market value of the common shares and warrants issued to such directors and insider under the Offering, nor the consideration for such securities, exceeds 25% of the Company's market capitalization as calculated in accordance with MI 61-101.

About Anconia

Anconia is a base and precious metals exploration and development company, which is focused on providing shareholder value through the advancement of its properties in its portfolio. Anconia is undertaking comprehensive exploration programs to determine the potential of its current projects.

Forward-Looking Information

This news release contains forward-looking statements and information under applicable securities laws, including with respect to the anticipated use of the proceeds of the Offering and the completion of a second tranche and the timing related thereto. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology are used to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management of Anconia in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to: the speculative nature of mineral exploration and development, including the uncertainty of mineral reserve and resource estimates; uncertainties relating to the availability and costs of financing needed to complete exploration activities; exploration costs varying significantly from estimates; delays in the exploration and development of, and/or commercial production from, the properties in which Anconia has an interest; unexpected geological or hydrological conditions; operational and technical difficulties; fluctuations in commodity prices; the existence of undetected or unregistered interests or claims, whether in contract or in tort, over the property of Anconia; success of future exploration and development initiatives; competition; operating performance of facilities; environmental and safety risks, including increased regulatory burdens, seismic activity, weather and other natural phenomena; inability to, or delays in, obtaining necessary permits and approvals from government authorities; risks relating to labour; and other exploration, development and operating risks; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; as well as other risks and uncertainties which are more fully described in Anconia's annual and quarterly Management's Discussion and Analysis and in other filings made by Anconia with Canadian securities regulatory authorities and available at www.sedar.com.

Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, Anconia disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although Anconia believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

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.

Contact Information

  • Anconia Resources Corp.
    Jason Brewster
    President and CEO
    416-815-9777