Standard Tolling Update
White Rock, British Columbia (FSCwire) - Standard Tolling Corp. (TSX-V: TON, Frankfurt: GA0, “Standard Tolling” or the “Company”) provides the following update.
On December 23, 2015 and February 29, 2016, the Company reported that it had delivered notice to Inca One Gold Corp. (“Inca One”) that all amounts outstanding to Standard Tolling were due and payable in accordance with the terms of the Loan and the Mineral Advance Agreement. The Company and Inca One have now reached agreement in principal on the timing and method of repayment of the amounts owed.
Inca One owes Standard Tolling a total of US$1,600,389 (the “Debt”). Standard Tolling has agreed to convert US$740,143 of Debt into shares of Inca One at a deemed price of C$0.11. The Inca One shares will be subject to four month hold period when issued. Inca One will pay Standard Tolling US$120,103 at the rate of US$70,103 upon closing Inca One’s convertible debenture offering announced by them on April 19, 2016 and US$25,000 on the last day of each of the two following months. The final US$740,143 will be paid to Standard Tolling within twelve months of Inca One achieving and maintaining, for at least three months, defined production performance milestones at its toll milling facility in Peru (the “Reinstatement Date”). The US$740,143 will begin to accrue interest on the Reinstatement Date at the rate of 12% per annum until paid. The US$740,143 plus interest must be paid within 12 months of the Reinstatement Date. If the defined production performance milestones are never achieved the final US$740,143 of the Debt will never be paid to Standard Tolling.
The Inca One settlement is, among other things, contingent upon Inca One successfully raising a minimum of US$2 million in a new convertible debenture financing announced on April 19, 2016 and regulatory and exchange approvals.
The Board of Directors are continuing their efforts to salvage and sell what it can from the Huamachuco plant in Peru, with it being recognized that the majority of the costs of building the plant are sunk in construction and not salvageable and sellable. The land that the Huamachuco plant sits on may have value and the Company is now attempting to sell the land to potential buyers. The Company will update as sales of equipment and land are realized.
As reported on December 23, 2015, Standard Tolling owes an aggregate of US$2,250,000 in principal plus accumulated interest to the holders of 2,250 ore purchase notes with a face value of US$1,000 each an aggregate (the “Ore Notes”). The proceeds of the final settlement with Inca One when realized and the proceeds, if any, on the sales of the land and additional equipment, will provide funds to go towards settling the debts of Standard Tolling.
ON BEHALF OF THE BOARD
/s/ Doris Meyer
Doris Meyer, President and Interim Chief Executive Officer
For further information please contact:
Tel: 604-536-2711 ext 6 for Doris Meyer
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 release.
This news release contains certain statements that may be deemed “forward-looking” statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur and include, without limitation, statements regarding the Company’s plans with respect to statements about the Company’s ability to recover the amounts owed by Inca One, the sale of the land owned and equipment salvaged from the Company’s plant located at Huamachuco, Peru all as outlined in this news release. Although Standard Tolling believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
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Source: Standard Tolling Corp. (TSX Venture:TON, FWB:GA0) http://www.standardtolling.com/s/Home.asp
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