Interconnect Ventures Corporation
TSX VENTURE : IVC

October 31, 2013 09:01 ET

Interconnect Ventures Corporation Announces Closing of Its Qualifying Transaction and Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 31, 2013) -

NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Interconnect Ventures Corporation (TSX VENTURE:IVC) (the "Company") is pleased to announce that it has closed its qualifying transaction (the "Qualifying Transaction") and non-brokered private placement, previously announced on June 17, 2013 and more particularly detailed in the Company's information circular (the "Circular") dated September 18, 2013, a copy of which has been filed on the Company's SEDAR website at www.sedar.com. As a result of the completion of the Qualifying Transaction, and upon issuance by the TSX Venture Exchange (the "Exchange") of a final bulletin (the "Bulletin") approving the Qualifying Transaction, the Company's classification will formally change from a capital pool company to a Tier 2 mining issuer. The Company's shares are expected to resume trading on Friday, November 1, 2013.

The Mineral Property Option Agreement

Pursuant to the terms of a Mineral Property Option Agreement (the "Option Agreement") dated September 8, 2013 between the Company and Alpha Minerals Inc. ("Alpha"), Alpha granted the Company an option (the "Option") to acquire an undivided 70% interest in certain mineral claims comprising the "Donna" gold property located near Vernon, British Columbia. The Company may exercise the Option by making cash payments to Alpha totaling $100,000 over a period of three years form the date of the Bulletin, by issuing an aggregate of 400,000 common shares to Alpha (or as directed by Alpha) over a period of three years from the date of the Bulletin and undertaking an aggregate of $600,000 in exploration expenditures on the Donna property over a period of three years from the date of the Bulletin. The Option will be subject to a 2% net smelter return royalty payable to the underlying owners of the Donna property.

The Non-Brokered Private Placement

The Company is also pleased to announce that it has completed a non-brokered private placement of 5,000,000 units (a "Unit") at a price of $0.20 per Unit for gross proceeds of $1,000,000 (the "Private Placement"). Each Unit is comprised of one common share and one share purchase warrant (a "Warrant"). Each Warrant shall entitle the holder to acquire one additional common share in the capital of the Company for a price of $0.25 until October 24, 2015. The Company will use the net proceeds of the Private Placement to pay the purchase price for the assets acquired pursuant to the Qualifying Transaction, to pay for the costs of the Qualifying Transaction and for general working capital. The Units, common shares and any securities issued upon exercise of the Warrants are subject to a four (4) month hold period expiring on February 25, 2014.

In addition, the Company has paid PI Financial Corp. (the "Finder") a finder's fee of $50,000 in connection with the Finder introducing certain qualified investors to the Company. The Company is also pleased to announce that Mr. David Cross has been appointed as the Company's Chief Financial Officer in place of Mr. John Ulmer, who will remain a director of the Company.

ON BEHALF OF THE BOARD OF DIRECTORS

Dr. Eyad Al Saleh, Chief Executive Officer and Director

This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events, such as the statements that: (i) the Company expects that it will resume trading on the Exchange on November 1, 2013; (ii) upon resumption of trading, the Company will have graduated from being a capital pool company on the Exchange and its stock symbol will have,changed from "IVC.P" to "IVC"; and (iii) that the Company intends to use the proceeds from the Offering as set out in the Circular. Such forward-looking information can include statements based on current expectations involving a number of risks and uncertainties such as the willingness of the Exchange to issue its final bulletin and acceptance, current economic conditions and the state of mineral exploration and mineral prices in general. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. The Company can offer no guarantee that its goals and objectives in the Circular will be accomplished, in part or at all. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates that are made and expressly qualified in their entirety by this notice. Investors are cautioned that trading in the securities of a capital pool company should be considered highly speculative. The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release. Neither the TSX Venture Exchange nor its Regulation Service 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 news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (The "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. person unless registered under the U.S. SecuritiesAct and applicable state securities laws or an exemption from such registration is available.

Contact Information

  • Interconnect Ventures Corporation
    Suite 300-576 Seymour Street
    Vancouver, British Columbia, V6B 3K1
    (604) 889-2149
    (604) 688-6995 (FAX)