Standard Tolling Update
White Rock, British Columbia (FSCwire) - Standard Tolling Corp. (TSX-V: TON, Frankfurt: GA0, “Standard Tolling” or the “Company”) reports that it has completed the settlement of US$1,678,721 (the “Debt”) owed by Inca One Gold Corp. (“Inca One”) as announced on April 19, 2016.
Inca One delivered to Standard Tolling the following in full and final settlement of the Debt:
1. 2,236,960 common shares of Inca One. 820,600 of the common shares are subject to a hold period expiring January 2, 2017, 708,180 of the common shares are subject to a hold period expiring May 1, 2017, and 708,180 of the common shares are subject to a hold period expiring September 1, 2017;
2. 553,640 transferable common share purchase warrants exercisable into one common share of Inca One at a price of C$0.40 until January 2, 2020;
3. Promissory note for US$120,103. US$53,436 has been received, US$33,333 is payable by October 15, 2016 and US$33,333 is payable by November 30, 2016; and
4. Contingent secured debenture certificate (the “Debenture”) for US$779,309 (the “Contingent Debt”). The Contingent Debt is payable within twelve months of Inca One achieving the following two milestones (the “Performance Milestones”):
(i) 300 tonne per day (“TPD”) mineral processing capacity through both capacity expansion at Chala One SAC (which is currently constructed to approximately 100 TPD), and acquired/merged mineral processing capacity in Peru, as applicable; and
(ii) three months of 200 TPD company-wide average daily production, as determined by Inca One.
Once the Performance Milestones are met then the Debenture will become effective (the “Contingent Re-instatement Date”). Upon the Contingent Re-instatement Date, Standard Tolling will be entitled to receive interest on the Contingent Debt at a rate of 12% per annum, paid quarterly in arrears. The Debenture is transferable. Inca One may early redeem the Debenture prior to maturity subject to an early payment penalty of 2%. If the Performance Milestones are not met by August 31, 2026 then the Debenture will be cancelled.
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 also attempting to sell the land. The Company will update as sales of equipment and land are realized.
The Company also reports that it has paid its annual sustaining fees to the TSX Venture Exchange. Accordingly, the Company is not at risk of a halt of trading of its securities as reported on June 28, 2016.
The Company will continue to report on developments of the Company as they occur.
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 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)
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