TORONTO, ONTARIO--(Marketwired - Sep 1, 2015) - Caracara Silver Inc. (TSX VENTURE:CSV) (the "Company" or "Caracara") has completed a loan financing for gross proceeds of $60,000 for which the Company has issued a promissory note ("the Note"), with an interest rate of 12% per annum.
The principal and any accrued and unpaid interest owing will become due and be paid in full on the completion of any private placement completed by Caracara.
Pinetree Capital Inc., the holder of the Note, is an "insider" of the Company as such term is defined in the Ontario Securities Act. The participation of such insider constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101").
The insider's participation in the loan financing is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the loan was obtained on reasonable commercial terms that are not less advantageous to the Company than if the loan was obtained from a person dealing at arm's length with the Company, and the loan is not convertible into or repayable in equity or voting securities. A material change report in respect of the related party transaction was not filed at least 21 days in advance of the closing of financing due to the Company's need to address a short term working capital deficiency.
About the Company
Caracara Silver Inc. is focused on acquiring, exploring and developing zinc, lead and silver resources to meet the world's growing demand. The Company maintains its Princesa and Pilunani silver-zinc projects in Peru in good standing.
Caracara has 50,821,167 shares issued and outstanding and trades on the TSX Venture Exchange under symbol: CSV.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
This news release may contain forward-looking statements that are based on Caracara Silver Inc.'s expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and Caracara Silver Inc. undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
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 and has in no way passed upon the merits of the qualifying transaction and has neither approved nor disapproved of the contents of this press release.
