Consul-Teck Exploration Inc.
TSX VENTURE : IKI

April 07, 2014 15:32 ET

Consul-Teck Acquires Debentures in St-Georges Platinum & Base Metals Ltd.

MONTREAL, QUÉBEC--(Marketwired - April 7, 2014) - Jean-Raymond Lavallée, President of Consul-Teck Exploration Inc. (TSX VENTURE:IKI)(the "Corporation"), announces the following:

On July 2, 2013, the Corporation acquired convertible debentures (the "Debentures") in the principal aggregate amount of $435,000. The Debentures were issued to the Corporation by St-Georges Platinum and Base Metals Ltd. ("St-Georges") in a "security-for-debt" transaction for the settlement of a debt owing by St-Georges. The Debentures are convertible into common shares of St-Georges at a minimum conversion price of $0.10 per share. The Debentures bear interest at a rate of 6% per annum, payable upon conversion or at maturity, and will mature on July 2, 2023. Assuming full conversion of the Debentures at that time, the Corporation would have owned 4,350,000 common shares, representing 21.45% of the Corporation's common shares that would have been issued and outstanding at such time.

On April 3, 2014, the Corporation converted Debentures in the principal amount of $180,000 and acquired an aggregate of 1,800,000 common shares of St-Georges through such conversion. The Corporation also acquired 80,778 common shares representing the accrued interest on the Debentures since their issuance.

Immediately following the conversion of the Debentures, the Corporation directly and indirectly owned the following St-George securities: (i) Debentures in the principal amount of $255,000 that may be converted into a maximum of 2,550,000 common shares and (ii) 1,880,778 common shares of St-Georges. Assuming full conversion of the Debentures the Corporation would own 4,430,778 common shares, representing 16.47% of the St-George common shares that would then be issued and outstanding.

On April 4, 2014, the Offeror sold 1,880,000 common shares of St-Georges. Following the sale of the common shares, the Offeror still owns the following St-Georges securities: (i) Debentures in the principal amount of $255,000 that may be converted into a minimum of 2,550,000 common shares and (ii) 778 common shares of St-Georges. Assuming full conversion of the Debentures, the Offeror would own 2,550,778 common shares, representing 9.48% of the St-Georges common shares that would then be issued and outstanding.

The Corporation received the Debentures as part of a "security-for-debt" transaction with St-Georges for the payment of services. In accordance with applicable securities laws, the Corporation may, from time to time and at any time, acquire additional common shares of St-Georges and/or other equity, debt or other securities or instruments (collectively, "Securities") of St-Georges in the open market or otherwise, reserves the right to dispose of any or all of his Securities in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the Securities, the whole depending on market conditions, the business and prospects of St-Georges and other relevant factors.

Contact Information

  • Jean-Raymond Lavallee
    President
    Consul-Teck Exploration Inc.
    819-824-2425