MONTREAL, QUEBEC--(Marketwired - April 11, 2014) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Freyja Resources Inc. (TSX VENTURE:FRA) ("Freyja" or the "Corporation") is pleased to announce that it intends to complete a private placement of up to $250,000 of units (the "Units") at a price of $1,000 per Unit (the "Offering"). Each Unit will be comprised of $1,000 principal amount of secured, non-convertible debentures (the "Debentures"), which will mature twenty-four months from the date of issuance and 1,500 common shares in the capital of the Corporation. The Debentures will bear interest at a rate of 12% per annum paid monthly in cash and will be secured by certain assets of the Corporation.
Freyja may engage finders or agents to act as agents of Freyja in connection with the Offering, and in connection therewith may pay finders and agents a cash commission of up to 5% of the proceeds of the Offering that result from such parties efforts, subject to compliance with applicable securities laws. The finders and agents may also be granted warrants to purchase up to 5% of the number of Units sold under the Offering, with each warrant entitling the holder to purchase one Debenture at $1,000 per Debenture for a period of eighteen months from the closing of the Offering.
The net proceeds made available through the sale of the Units will be used by the Corporation to pay for the costs of the Offering, development of the Corporation's Las Cristinas mining project in Mexico and for working capital and general corporate purposes.
The Offering is subject to the approval of the TSX Venture Exchange. Pursuant to applicable securities laws, all securities issued pursuant to the Offering will be subject to a hold period of four months following the closing of the Offering.
Freyja Resources Inc. is a mining exploration company listed on the TSX Venture Exchange under the symbol "FRA". Freyja Resources' main operations are conducted through its wholly owned subsidiary Cyprium Mining Corporation ("Cyprium"). Cyprium is a mineral exploration company which targets the acquisition and generation of mining projects located solely in Northern Mexico that have a potential for profitable precious and base metal open pit production. Cyprium is committed to maximizing shareholder value by strategically ensuring efficient and profitable production and focusing on a hybrid exploration/production business model. Cyprium prioritizes projects accessible by well-maintained roads and/or railroad systems. Upon completion of a conclusive exploration campaign, Cyprium's focus is to rapidly establish an economical production and maximize the project potential by funding further exploration through cash generated by production, thus limiting shareholder dilution. The Company's main project is the Las Cristinas copper/silver project located in Chihuahua State, Mexico.
Neither TSX Venture nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.
The securities of Freyja being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties, including without limitation, statements pertaining to the closing of the Offering including Freyja's ability to obtain necessary approvals from the TSX Venture Exchange. Actual results may differ materially. Freyja will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Freyja.