Driven Capital Corp.
TSX VENTURE : DVV.P

April 04, 2011 09:44 ET

Driven Capital Corp. Announces Completion of Qualifying Transaction and Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 4, 2011) - Driven Capital Corp. (TSX VENTURE:DVV.P) (the "Company") is pleased to announce that further to the Company's news releases dated September 30, 2010 and February 25, 2011, the Company has completed its Qualifying Transaction consisting of an option to acquire up to a 100% interest in the Kuyakuz Mountain Property located in British Columbia, adjacent to Richfield Ventures Corp.'s Blackwater gold project. The Company's common shares are expected to commence trading on April 5, 2011 on Tier 2 of the TSX Venture Exchange under the trading symbol "DVV".

Concurrent Financing

The Company has completed the non-brokered private placement of 8,235,000 units (the "Units") at $0.10 per Unit for gross proceeds of $823,500 (increased from $750,000). Each Unit consists of one common share in the capital of the Company and one non-transferable share purchase warrant. Each share purchase warrant forming a part of the Units entitles the holder thereof to acquire one additional common share of the Company at a price of $0.15 per share for the first 12 months and $0.20 per share for the remaining 12 months. All the shares issued in the private placement and any resulting shares issued upon the exercise of any warrants will be subject to a hold period expiring on July 31, 2011.

Finder's fees of $31,745 were paid to finders and 317,450 finder's warrants (the "Finder's Warrants") were issued in connection with the private placement to finders. Each Finder's Warrant entitles the holder thereof to acquire one additional common share of the Company at a price of $0.10 per share for a period of two years from the closing date.

Net proceeds from the private placement will be utilized to fund the proposed work program on the Kuyakuz Mountain Property and for working capital.

Qualifying Transaction

As previously announced, the Company entered into an option agreement dated December 14, 2010 (the "Agreement") with Ansell Capital Corp. ("Ansell"), a publicly held junior mining company headquartered in West Vancouver, British Columbia and trades on the TSX Venture Exchange under the symbol "ACP". Under the Agreement, Driven has obtained the exclusive option to acquire up to a 100% interest in the Kuyakuz Mountain Property held by Ansell. The Kuyakuz Mountain Property, which is comprised of 15 contiguous mineral claims totaling approximately 6,434 hectares, is located in the Omineca mining division approximately 125km southeast of the municipality of Vanderhoof in the province of British Columbia, and bounds Richfield Ventures Corp.'s Blackwater Gold Project to the east.

Under the terms of the Agreement, the Company can acquire an undivided 70% interest in the Kuyakuz Mountain Property by incurring total exploration expenditures of $1,000,000 on the Kuyakuz Mountain Property as follows: a minimum $100,000 in expenditures to be incurred by the first year following the date of the final TSX Venture Exchange bulletin ("Exchange Acceptance"); a further $200,000 in expenditures by the second year; and a further $700,000 in expenditures by the third year. In addition, the Company must make cash payments to Ansell of $15,000 (paid), $20,000 within five days of the date of Exchange Acceptance, $50,000 on or before the first anniversary of Exchange Acceptance and $75,000 on or before the second anniversary as well as issue to Ansell 200,000 shares of the Company within five days of Exchange Acceptance, 200,000 shares on or before the first anniversary of Exchange Acceptance, and 400,000 shares on or before the second anniversary of Exchange Acceptance.

The Company has a further option to acquire the remaining 30% undivided interest in the Kuyakuz Mountain Property by issuing to Ansell an additional 1,200,000 shares of the Company on or before the fourth year following Exchange Acceptance.

The Kuyakuz Mountain Property is subject to a 2% net smelter returns royalty ("NSR") payable to Ansell, which may be purchased by the Company for $1,000,000.

Management and Directors

Toma S. Sojonky is the President, Chief Executive Officer and a director and Mark S. Achtemichuk is the Chief Financial Officer, Secretary and a director. Krister A. Kottmeier and Allan W. Williams are directors and geologist U. Peter Kurisoo was appointed a director of the Company.

The Company has granted stock options to directors pursuant to the terms of the Company's stock option plan to acquire 500,000 common shares of the Company at a price of $0.10 per share with a term of five years.

ON BEHALF OF THE BOARD OF DIRECTORS OF DRIVEN CAPITAL CORP.

Toma S. Sojonky, President

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

  • Driven Capital Corp.
    Toma S. Sojonky
    President
    (604) 569-0799