VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 28, 2014) - Bluestone Resources Inc. (TSX VENTURE:BSR) (the "Company")
On December 18, 2013, the Company announced a private placement with John Robins, the President and CEO of the Company ("Robins"), of a $130,000 convertible note maturing March 22, 2014. Robins has now agreed to extend the maturity date of the note for an additional 30 days to allow time for the Company to find a suitable financing alternative.
In addition, the Company has arranged a new $100,000 non-convertible loan with Robins, which has been reviewed and accepted by the Company's independent directors. The loan will be non-convertible, will bear interest at the rate of 12% per annum to the date of repayment, calculated monthly, and will mature on the date that is six months from the date funds are advanced. As consideration for the loan, the Company will issue 400,000 bonus shares to Robins, based on 20% of the face value of the loan and the minimum $0.05 per share issue price under Exchange policy. The loan agreement will contain provisions related to default by Bluestone and remedies available to the Lender.
Proceeds from the loan will be used to provide short-term working capital.
The new loan transaction will be subject to the approval of the TSX Venture Exchange.
About Bluestone Resources Inc.:
Bluestone Resources Inc. is a Canadian exploration company focused on the discovery and development of economic mineral deposits. Founded in 2004, the Company has assembled a team with the business acumen and technical expertise to identify and advance undervalued mineral exploration projects world-wide.
On behalf of the Board
Bluestone Resources Inc.
John Robins, CEO/President
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.
This press release includes "forward-looking information" including statements regarding the adoption of the Advance Notice Policy that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future events and that actual events or developments may differ materially from those projected in the forward-looking information. Such forward-looking information represents management's best judgment based on information currently available. The Company does not assume the obligation to update any forward-looking information, except as required by applicable law.