Steele Resources Corporation Completes Financing Arrangement
January 25 2011 - 1:14PM
Marketwired
Steele Resources Corporation (the "Company") (OTCBB: SELR)
announced today that it has
signed a $10.0 million
drawdown equity financing agreement with Auctus Private Equity
Fund, a Boston-based institutional investor.
Company CEO Scott Dockter commented on the financing saying,
"Completing this funding agreement with Auctus is an excellent step
for the continued development of our precious metals exploration
properties. With this in place, we have committed financing for
future development that we will be able to take advantage at the
appropriate time."
Mr. Dockter continued, "This financing does not address the
short term capital needs of the Company, nor is it intended to do
so. We are currently reviewing offers for short term financing
that, if accepted, will enable the Company to complete its
acquisition of the Mineral Hill Exploration project in Pony,
Montana, as well as provide for the first major development of that
property."
Pursuant to a Registration Rights Agreement, the Company intends
to register up to 20 million shares of its common stock with the
Securities and Exchange Commission. Upon such registration being
declared effective the Drawdown Agreement allows the Company, at
its discretion, to sell to Auctus up to $10 million of its common
stock from time to time over a 36-month period. The Company will
have the right, but no obligation, to sell stock to Auctus in
amounts up to $500,000 per week depending on certain conditions as
set forth in the Drawdown Agreement.
There are no upper limits to the price Auctus may pay to
purchase the Company's common stock and the purchase price of the
shares related to the $10 million of future funding will be based
on 95% of the average lowest bid price during the pricing period as
outlined in the Agreement. The Company will control the timing and
amount of any sales of shares to Auctus. There are no financial or
business covenants, restrictions on future funding, rights of first
refusal, participation rights, penalties or liquidated damages in
the Drawdown Agreement. The Agreement may be terminated by the
Company at any time, at its sole discretion, without any cost or
penalty.
A more detailed description of the agreement is set forth in the
Company's Current Report on Form 8-K filed with the SEC on January
24, 2011.
About Steele Resources Corporation:
Steele Resources Corporation is a precious metals exploration
and development company operated by professionals with extensive
exploration, mining, and public market experience. The Company is
working to become an active gold producer through exploration,
acquisitions, mergers, and by developing its existing portfolio of
properties. Its current ensemble of exploration properties, held by
its subsidiaty,Steele Resources, Inc., includes two Nevada
properties, its Comstock Tyler Project which consists of 600 acres
in the historic Comstock District and its Fairview-Hunter Project
which consists of 2,300 acres near the Denton-Rawhide Mine. The
Company has also announced plans to acquire the Mineral Hill
Exploration project which is located near Pony, MT.
More information about Steele Resources Corporation can be found
at www.steeleresources.com.
Safe Harbor Statement
The matters discussed in this release contain forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended that involve risks and uncertainties.
Although Steele Resources Corp. believes that the expectations
reflected in such forward-looking statements are reasonable, the
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ from those projected.
Steele Resources Corp. cautions investors that any forward-looking
statements made by Steele Resources Corp. are not guarantees of
future performance and actual results may differ materially from
those in the forward-looking statements. Factors that could cause
actual results to differ materially from those reflected in
forward-looking statements include, but are not limited to, risks
and uncertainties regarding the actual mineralization of Steele
Resources Corp.'s mining properties, the unproven nature of and
potential changes to Steele Resources Corp.'s business model, the
risk that the capital and other resources that Steele Resources
Corp. will need to exploit its business model will not be
available, and the risks discussed in Steele Resources Corp.'s Form
8-K dated June 17, 2010 and in Steele Resources Corp.'s subsequent
filings with the Securities and Exchange Commission.
Contact: Website: www.steeleresources.com Email:
info@steeleresources.com Scott Dockter Phone: 530.672.6225
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