Lupaka Enhances Short-Term Liquidity Position by $2.0 Million
Lupaka Enhances Short-Term Liquidity Position by $2.0 Million
VANCOUVER, BRITISH COLUMBIA, March 7 , 2019 – Lupaka Gold Corp. (" Lupaka
Gold" or the “ Company") (TSX-V: LPK, FRA: LQP) is providing additional details under
the debt-for-share conversion application to the TSX Venture Exchange (“TSXV”), as well
as an update with respect to the non-brokered private placement announced on January
28, 2019 and updated on February 14, 2019.
Will Ansley, President and CEO stated, “The initiatives outlined today will improve the
Company’s short-term liquidity position by a combined $2.0 million, a significant milestone
and development for Lupaka.”
Non-brokered Private Placement
The Company has received subscription commitments of $665,000 with respect to the
non-brokered private placement (the “Offering”, or “Private Placement”) announced on
January 28, 2019 and updated on February 14, 2019. Each Unit will be priced at $0. 06
and will consist of one common share of the Company and one transferable common
share purchase warrant (each, a “ Warrant”), with each Warrant entitling the holder to
acquire one common share of the Company at a price of $0.10 for a period of 30 months
from the date of the closing of the Offering.
Proceeds from the Offering are intended to be used for general working capital purposes,
including community and social relations initiatives in Peru.
Liquidity Improvement Program
As announced on February 14, 2019, the Company has implemented a program to
significantly improve its liquidity position. Under the liquidity improvement program (“LIP”)
the Company has reached agreements with several creditors to convert $873,971 in
bridge loans and short-term accounts payable in Canada into 14,566,175 Units with the
same terms as the Private Placement, with a deemed price of $0.06. Certain directors and
officers of the Company are participating in the shares for debt conversion , totalling
$156,250 converting to 2,604,166 Units. Furthermore, an additional $450,000 of current
accounts payable have been restructured into long-term note s, conditionally payable
based on achieving future production thresholds at Invicta.
The closing of the Offering, and the issuance of the Common Shares in this shares-for-
debt transaction is expected to occur on or before March 15, 2019 and is subject to receipt
of approval of the TSXV.
The common shares and Warrants issued in the Placement and shares -for-debt
transaction will be subject to a four-month hold period.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term
is defined in the policies of the TSX Ve nture Exchange) accepts responsibility for
the adequacy of this news release.
About Lupaka Gold
Lupaka is an active Canadian-based company focused on creating shareholder value
through discoveries and strategic development of the Invicta development project, located
in Peru, approximately 120 kilometres north of Lima.
FOR FURTHER INFORMATION PLEASE CONTACT:
Will Ansley, President & C.E.O.
Tel: (416) 862-5257
or visit the Company’s profile at www.sedar.com or its website at www.lupakagold.com
Cautionary Statements Regarding Forward Looking Information
This press release contains forward -looking statements which constitute "forward -looking
information" within the meaning of applicable securities laws, including all statements, trend
analysis and other information relative to anticipated future events or results. All statements, other
than statements of historical fact, included herein are considered forward -looking statements,
including, without limitation, the acceptance of the debt for shares conversion by the Company’s
creditors; the use of proceeds of the Offering, the receipt of regulatory approval of the Offering, the
size and completion of the Offering.
Forward-looking statements are based on assumptions, estimates and opinions of management at
the date the statements are made and which the Company believes are reasonable. Such
information involves risks and uncertainties, and undue reliance should not be placed on such
information, as unknown or unpredictable factors could have material adverse effects on future
results, performance or a chievements of the Company. Among the key factors that could cause
actual results to differ materially from those projected in the forward -looking information are the
following: that regulatory approval of the Offering is not received; that financing will not be available
when and if needed on reasonable terms; adverse changes in general economic conditions,
changes in the financial markets and in the demand and market price for commodities . This
forward-looking information may be affected by risks and unc ertainties in the regular course of
business and due to market conditions. Additional risks are described in the Company’s annual
information form, which is available on SEDAR at www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual actions,
events or results to differ materially from those described in forward-looking information, there may
be other factors that cause actions, events or results to not be as anticipated, estimated or intended.
There can be no assurance that forward -looking information will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements. Readers
are cautioned not to place undue reliance on forward -looking informatio n due to the inherent
uncertainty thereof. Lupaka Gold does not undertake any obligation to update forward -looking
statements except as required by applicable securities laws. Investors should not place undue
reliance on forward-looking statements.