Orestone Mining Corp. (TSX VENTURE:ORS) (the “Company”) announces the Company’s plan to undertake a corporate reorganization consisting of a shares for debt settlement arrangement, the restructuring of its Board of Directors and the appointment of new executive officers (collectively, the “Reorganization”). The Company also intends to proceed with a non-brokered private placement of units (the “Private Placement”).
Pursuant to the Reorganization, the Company intends to retire indebtedness owing by the Company to certain creditors, which include certain directors and executive officers of the Company, in the aggregate amount of $320,760 by issuing a total of 6,415,200 common shares of the Company at an issue price of $0.05 per share (the “Shares for Debt Settlement”).
In connection with the Reorganization, the Company has also restructured its Board and management personnel. Michael Tulumello has resigned as a director and David Hottman and Gary Nordin have been appointed directors of the Company. Jose Antonio Pinedo has resigned as President and CEO and David Hottman has been appointed to both positions. Mr. Pinedo has also resigned as Corporate Secretary and Bernard Poznanski has been appointed as Corporate Secretary. Robert Perry has resigned as VP Exploration and Gary Nordin has been appointed as VP Exploration. Lorne Torjelm will remain as Chief Financial Officer.
David Hottman has over 20 years experience in corporate finance and management of junior resource companies. He was a founding team member of Portal Resources, Eldorado Gold and Nevada Pacific Gold (TSX) which was acquired by US Gold in 2007. Prior to co-founding Eldorado Gold, David also worked with Bema Gold. Mr. Hottman has been involved in raising more than $300 million for these companies.
Gary Nordin, B.Sc (Geol. Hons) is a leading exploration geologist with a proven track record of identifying and developing important resource projects. He was a founding team member of Eldorado Gold and Bema Gold, which was acquired by Kinross. Having been a vice president of both Bema Gold and Eldorado Gold, Mr. Nordin made major contributions to the growth of both companies. Gary is credited as a co-discover of the 6 million ounce Refugio gold deposit in Chile.
“Orestone is very pleased to welcome David Hottman and Gary Nordin to the team. They bring strong track records of discovery, development, and value creation. We look forward to working with them to build Orestone Mining and capitalize on our strong portfolio of BC gold and copper properties,” stated Patrick Highsmith, a founding director of the Company.
The Private Placement
Under the Private Placement, the Company proposes to issue up to 5,000,000 units (“Units”) at a price of $0.05 per Unit for gross proceeds of up to $250,000, each Unit consisting of one common share of the Company and one common share purchase warrant (“Warrant”). Each Warrant will be exercisable for one common share of the Company at a price of $0.10 for a term of two years from the date of issuance. The net proceeds of the Private Placement will be used for exploration and development of the Company’s mineral exploration projects and for working capital.
The Shares for Debt Settlement and the Private Placement are subject to the approval of the TSX Venture Exchange.
The securities of the Company and the securities of the Company to be issued pursuant to the Private Placement and the Shares for Debt Settlement have not and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.
Orestone controls four gold and gold-copper projects totaling more than 680 square kilometers in the Stikine and Quesnel Terranes of northern British Columbia, including the 40,000 hectare Captain Gold Project, which adjoins Thompson Creek’s Mt. Milligan copper gold project that is under construction.
The Quesnel Terrane extends from the US border to northern B.C. and hosts numerous mines and many developing bulk tonnage Cu-Au prospects, such as those on the Mt. Milligan and Kwanika properties in north-central B.C.
The Todd Creek gold copper project occurs within the favorable Hazelton Group stratigraphy and associated suites of intrusions southeast of Pretium Resources’ Brucejack and Snowfield Properties. In addition to these active exploration projects, this geological environment hosts many large and significant mineral deposits including Seabridge’s KSM Deposits, Granduc, and Eskay Creek.
ON BEHALF OF ORESTONE MINING CORP.
President and 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. This news release has been prepared by management and no regulatory authority has approved or disapproved the information contained herein.
For further information contact: David Hottman or Mehran Bagherzadeh, Corp. Comm at 604-629-1929 | firstname.lastname@example.org
750 - 625 Howe Street, Vancouver, BC V6C 2T6, Canada | Phone: 604-629-1929 | Fax: 604-629-1930 | www.orestone.ca