THUNDER BAY, ON, March 26, 2015 /CNW/ - Kesselrun Resources
Ltd. (TSXV:KES) ("Kesselrun" or the "Company") is pleased to
provide the following corporate update:
Tamaka Gold Corp Debentures
Kesselrun is pleased to announce that Tamaka Gold Corp
("Tamaka"), a private corporation, has made the interest payment on
Tamaka's $2,000,000 senior unsecured
convertible debenture issued to Kesselrun by Tamaka (see news
release dated August 6, 2014).
The interest payment consisted of a cash payment of $38,164.38 and the issuance of a further
$38,000 senior unsecured convertible
debenture.
The Convertible Debentures of Tamaka will mature on the date
which is seven years following their date of issuance, and will
earn interest at a fixed rate of 10% per annum compounded annually.
At the election of Tamaka, up to 50% of the interest may be paid by
the issuance of additional Convertible Debentures of Tamaka. In the
event of a liquidity event, the principal amount and all accrued
and unpaid interest will automatically convert to common shares of
Tamaka or the subsidiary of Tamaka which is the subject of the
liquidity event, at a conversion price per common share that is
equal to 50% of the value of each common share as determined in the
context of such liquidity event. A liquidity event includes any of:
a) an initial public offering of common shares or units of Tamaka
or a subsidiary of Tamaka, b) a reverse take-over by a publicly
listed company of all the issued and outstanding shares of Tamaka
or a subsidiary of Tamaka, or c) the sale of a majority of the
issued and outstanding common shares of Tamaka or a subsidiary of
Tamaka representing a change of control. The Convertible Debentures
of Tamaka will be subject to certain restrictions on transfer, and
a right of first refusal in favour of Tamaka. Subject to certain
exceptions, the Convertible Debentures of Tamaka will not be
redeemable prior to the third (3rd) anniversary of the date of
issuance thereof unless agreed to by the holder, after which they
will be redeemable, in cash, at the option of Tamaka at the
principal amount plus all accrued and unpaid interest.
Tamaka, through its wholly owned subsidiary Goldlund Resources
Inc., owns 100% of the Goldlund Gold Project located between
Dryden and Sioux Lookout, Ontario near Treasury Metal's
Goliath Gold Project. For more information on Tamaka and the
Goldlund Gold Project please refer to Tamaka's website
www.tamakagold.com.
Stock Options Granted
The Board of Directors of Kesselrun has granted an aggregate of
700,000 incentive stock options exercisable at a price of
$0.05 per common share for a period
of five years to directors, officers and consultants of Kesselrun.
The options were granted in accordance with the Company's stock
option plan, which was approved by the shareholders of the Company
at the Annual General Meeting held on December 23, 2014.
The option grant will be filed with the TSX Venture
Exchange. Any securities issued pursuant to the exercise of
stock options will be subject to a four-month hold period from the
date of grant in accordance with securities regulation.
About Kesselrun Resources Ltd.
Kesselrun Resources is a Thunder Bay,
Ontario-based mineral exploration company focused on growth
through property acquisitions and discoveries. Kesselrun's
management team possesses strong geological and exploration
expertise with particular experience in Northwest Ontario. For more information about
Kesselrun Resources, please visit www.kesselrunresources.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.
Forward Looking Statements – Certain information set forth in
this news release may contain forward-looking statements that
involve substantial known and unknown risks and uncertainties.
These forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of
Kesselrun, Goldlund and Tamaka, including, but not limited
to the impact of general economic conditions, industry conditions,
volatility of commodity prices, dependence upon regulatory
approvals, the execution of definitive documentation, the
availability of financing and exploration risk. Readers are
cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements.
SOURCE Kesselrun Resources Ltd.
