MONTRÉAL, QUÉBEC--(Marketwire - Feb. 26, 2013) - Quinto Real Capital Corporation (the « Corporation » or « Quinto ») (TSX VENTURE:QIT) announces today its intention to finalize, before February 28, 2013, subject to the conditions described herein, a $500,000 financing through secured debentures.
The debentures to be issued will have a term of 24 months, bearing an interest rate of 9.75% per annum and payable quarterly. The capital amount of the offered debentures will be secured by Quinto's assets.
« Because of the volatility in Quinto's stock price we believe this type of financing was the best way to immediately raise the funds necessary to proceed with the Monster Lake gold project, in collaboration with TomaGold Corporation," said Michael Curtis, the Corporation's President and Chief Executive Officer.
The debentures may be converted at a price of $0.40 per common share, which is above the weighted average daily trading price on February 20, 21, 22 and 25, 2013: (i) in the occurrence of an event of default; or (ii) in the event Quinto's common shares trade for ten consecutive business days at an average daily trading price of $0.80 for the first 12 month period and $1.20 for the second 12 month period. A maximum number of 1,250,000 common shares will be reserved with the TSX Venture Exchange in order to guaranty the holder's conversion right.
Subject to the approval of the TSX Venture Exchange, the funds will be used to provide Quinto with an adequate working capital and to further its short term interest toward the Monster Lake gold project. The Corporation's management plans to complete the financing by the end of this month.
About Quinto Real Capital Corporation
Quinto Real Capital Corporation is a Canadian-based mining exploration company focused on the exploration, evaluation and development of gold mining properties with a view to commercial production. Quinto holds two options to acquire up to a 70% interest in the Monster Lake gold property, located in the Chibougamau mining camp, in Québec.
The Corporation's public documents may be consulted on www.sedar.com.
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 made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statement.