VANCOUVER, Feb. 6,
2015 /CNW/ - Equitas Resources Corp. (TSXv: EQT) (FSE:
T6U1) ("Equitas" or the "Company") announces, subject to TSX
Venture Exchange ("Exchange") acceptance, a non-brokered private
placement of 5,257,240 units ("Units") at a price of
$0.05 per Unit for gross
proceeds of $262,862. Each
Unit will consist of one common share and one Warrant. Each Warrant
is exercisable into one common share of the Company for a period of
24 months from closing at a price of $0.10 per common share.
All the securities issuable will be subject to a
four-month hold period from the date of closing. The private
placement is subject to the approval of the TSX Venture
Exchange.
The proceeds of the private placement will be
used to advance the Company's exploration activities at the Garland
Property in Labrador, Canada, and
for general working capital.
In addition, subject to Exchange acceptance, the
Company has entered into a debt settlement agreement dated
January 30, 2015 (the "Debt
Settlement Agreement") with Ridge Resources Ltd ("Ridge") a company
controlled by Kyler Hardy, President
and Director of the Company.
Ridge entered into an Assignment of Debt
Agreement dated January 29, 2015 with
Zimtu Capital Corp. a related Company, whereby Ridge purchased
$100,000 of the existing debt for
$50,000. The Company wishes to
extinguish the assigned debt by the issuance of 1,000,000 common
shares at a deemed value of $0.05 per
common share, based on amount paid by Ridge to acquire the debt,
rather than the principle amount of the debt. The shares will
be subject to a four month hold period.
The Company determined it was best to satisfy its
outstanding debt by the issuance of shares so to preserve its cash
for operations and exploration activities.
The Company is relying on exemptions from the
prospectus requirements found in section 2.14 of National
Instrument 45-106 and applicable securities laws to issue the
shares to Zimtu. The common shares issued to Ridge will be
subject to a four month hold period.
On Behalf of the Board of Directors,
EQUITAS RESOURCES CORP.
"Kyler
Hardy"
Kyler Hardy
President
Tel: 604.681.1568
Neither 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 release.
It is important to note that actual outcomes and
the Company's actual results could differ materially from those in
such forward-looking statements. Risks and
uncertainties include economic, competitive, governmental,
environmental and technological factors that may affect the
Company's operations, markets, products and prices.
Factors that could cause actual results to differ materially may
include misinterpretation of data; that we may not be able to get
equipment or labour as we need it; that we may not be able to raise
sufficient funds to complete our intended exploration and
development; that our applications to drill may be denied; that
weather, logistical problems or hazards may prevent us from
exploration; that equipment may not work as well as expected; that
analysis of data may not be possible accurately and at depth; that
results which we or others have found in any particular location
are not necessarily indicative of larger areas of our properties;
that we may not complete environmental programs in a timely manner
or at all; that market prices for nickel may not justify commercial
production costs; and that despite encouraging data there may be no
commercially exploitable mineralization on our properties.
Readers should refer to the risk disclosures
outlined in the Company's Management Discussion & Analysis of
its audited financial statements filed with the British Columbia
Securities Commission.
SOURCE Equitas Resources Corp.