Daura Capital Corp. Announces Update to Proposed Qualifying Transaction
Vancouver, British Columbia--(Newsfile Corp. - January 24, 2020) - Daura Capital Corp. (TSXV: DUR.P) (the "Company" or "Daura"), a capital pool company listed on the TSX Venture Exchange (the "TSXV") provides an update on the status of its proposed qualifying transaction (the "Qualifying Transaction") with Estrella Gold S.A.C. ("Estrella").
The Company is continuing to work with Estrella on the preparation of all documentation necessary to complete the required filings with the TSXV and complete the proposed Qualifying Transaction. This includes the preparation of a definitive agreement and the preparation of a geological report complying with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects.
In addition, the Company announced that it intends to complete a non-brokered private placement of 2 million common shares at a price of $0.10 per share, for total gross proceeds of $200,000 as a bridge financing prior to completion of the proposed Qualifying Transaction (the "Bridge Financing"). Proceeds from the Bridge Financing will be used to fund costs associated with completing the proposed Qualifying Transaction.
Closing of the proposed Qualifying Transaction and the Bridge Financing are subject to the approval of the TSXV. All securities issued under the Bridge Financing will be subject to hold periods expiring four months and one day after the date of issuance. Additional restrictions may apply under the rules of the TSXV and applicable securities laws.
This news release does not constitute an offer to sell, or solicitation of an offer to buy, nor will there be any sale of any of the securities offered in any jurisdiction where such offer, solicitation or sale would be unlawful, including the United States of America. The securities being offered as part of the Bridge Financing have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and any applicable state securities laws, or pursuant to available exemptions therefrom.
For further information please contact:
Daura Capital Corp.
543 Granville, Suite 501
Vancouver BC V6C 1X8
William T.P. Tsang CFO and Corporate Secretary
Mark D. Sumner CEO and Director
NEITHER 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.
Completion of the proposed Qualifying Transaction is subject to a number of conditions, including but not limited to TSXV acceptance and, if applicable pursuant to TSXV requirements, majority of the minority shareholder approval. Where applicable, the proposed Qualifying Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Proposed Transaction will be completed as proposed or at all.
Information set forth in this news release contains forward-looking statements. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. Daura cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Daura's control. Such factors include, among other things: risks and uncertainties relating to Daura's ability to complete the proposed Qualifying Transaction; and other risks and uncertainties. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Daura undertakes no obligation to publicly update or revise forward-looking information.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
A halt in trading shall remain in place until after the proposed Qualifying Transaction is completed or such time that acceptable documentation is filed with the TSXV.
Not for Distribution to US Newswire Services or Dissemination in the United States