VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 14, 2012) - Lions Gate Metals Inc. (TSX VENTURE:LGM) ("Lions Gate" or the "Company") is pleased to provide the following corporate update:
Line of Credit Facility
Lions Gate has arranged a line of credit facility with 0932879 BC Ltd. ("BC Co."), a company with a director in common with Lions Gate Metals Inc. Pursuant to the terms of the agreement, BC Co. will provide the Company with up to one hundred thousand dollars ($100,000.00) at an interest rate equal to prime plus 9% and will issue a one-time bonus of one hundred and fifty thousand (150,000) common shares of Lions Gate Metals Inc. This loan will become fully due and payable by October 1st, 2013.
Funding will be used for general working capital and to service current payables. The line of credit facility and bonus shares are subject to receipt of regulatory approval.
Additionally management would also like to announce that despite its firm belief in its Hudson Bay Project and Kelly Creek property regretfully the decision has been made to release both these projects.
"Given the current status of the junior exploration market we need to stay aligned with our goal of maintaining our capital structure and reducing cost. The grass roots nature of both these projects, no matter how much blue sky we feel they represent, no longer fit our risk profile. As we support the option agreement recently announced on our Poplar Project we will seek new opportunities that are more in line with the current environment" comments CEO & Chair Arni Johannson.
About Lions Gate Metals
Lions Gate is a public Canadian based, junior resource company focused on the exploration, development, and acquisition of both advanced and early stage mineral projects.
Sincerely on behalf of the Board of Directors,
Arni Johannson, Chairman and Interim President and CEO
Lions Gate Metals Inc.
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