Inca One Resources Corp.

TSX VENTURE : IO


Inca One Resources Corp.

May 16, 2014 08:30 ET

Inca One Announces $325,000 Convertible Debenture Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 16, 2014) - INCA ONE RESOURCES CORP. (TSX VENTURE:IO) ("Inca One" or the "Company") is pleased to announce a non-brokered private placement (the "Debenture Financing") of debentures (the "Debentures") in the amount of $325,000.

The Debentures will bear interest at a rate of 10% per annum, calculated and paid quarterly in arrears. During the first year of the term of the Debentures, 25% of the principal may, at the option of the holder, be converted into common shares of the Company at a price of $0.125 per common share.

The Debentures are redeemable by the Company at any time following three years after closing of the Debenture Financing. The Debentures will be secured by a security interest in all of the Company's present and after acquired property pursuant to a security agreement.

A finder's fee of 4% of the gross proceeds received from the sale of the Debenture will be payable in cash. Closing of the Debenture Financing is subject to the execution of definitive transaction documents and the approval of the TSX Venture Exchange.

The Company also announces that it has cancelled 325,000 stock options granted in April, 2014.

Inca One is continuing its efforts to secure additional non-dilutive funding to increase capacity at the Chala plant to achieve the Company's goal of 100 tons per day. Further updates will be provided to shareholders once these efforts are finalized.

About Inca One Resources Corp

Inca One is a Canadian-based mineral resource company and ore processing company with a gold milling facility in Peru, servicing government-permitted small-scale miners. A highly mineral-rich country, Peru is one of the world's top producers of gold, silver, copper and zinc, with substantial production coming from small scale miners who need government permitted milling facilities to process their ore (such as the Company's Chala mill).

On behalf of the Board,
INCA ONE RESOURCES CORP.
Edward Kelly
President & CEO

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 NEWS RELEASE.

Statements regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) fluctuation of mineral prices; (ii) a change in market conditions; and (iii) the fact that the Company has limited operating experience with its Chala plant and future operational results may not be accurately predicted based on this limited information to date. Except as required by law, the Company does not intend to update any changes to such statements.

This news release deals only with the Company's Chala plant, which is an industrial project. This presentation does not deal at all with the Company's sole mineral exploration property, the Corizona property. Investors should note that no resource has been established on the Corizona property and all of the material currently being processed at the Chala plant is received from local small scale mining operations.

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