Conway Resources Announces Debt Settlement and Amends Terms of Convertible Debenture
August 31 2010 - 9:35PM
Marketwired
Conway Resources Inc. ("Conway" or the "Company") (TSX VENTURE:
CWY) announces that is has reached an agreement with a supplier for
the settlement of related debts of $63,932.93. As a result, Conway
will issue an aggregate of 1,278,659 common shares and 1,278,659
warrants, each warrant entitling the holder to purchase an
additional common share of the Company at $0.10 per share for a
twelve-month period. The securities issued in relation with the
debt settlement will be subject to a restricted period of four
months and one day.
Furthermore, the Company amended the terms of the convertible
debenture announced on June 29, 2010. To that effect, the Company
is presently negotiating a convertible debenture private placement
for an amount of $200,000 (the "Debenture" or "Convertible
Debenture") that will be reimbursable in cash or gold, at the
option of the holder. The Debenture will be convertible into common
shares of the Company at the option of the holder at a price of
$0.10 per share for a 9-month period (the "Maturity Date"), and
bears interest at a rate of 10% annually, payable monthly in cash
or gold, at the option of the holder. It will also be accompanied
by 2,000,000 warrants. Each warrant will entitle the holder to
subscribe to one additional common share of the Company at a price
of $0.10 for a 9-month period following issuance.
The Company will be able to reimburse the Convertible Debenture
at any time after the 5th month following its issuance, in cash or
gold at the option of the holder, subject to a minimal
reimbursement equal to 50% of the principal amount.
The Convertible Debenture will be the object of a finder's fee
for an amount corresponding to 10% of the total Convertible
Debenture. The net proceeds from this Convertible Debenture will be
used for the Company's working capital purposes. The underlying
shares to be issued pursuant to the conversion of the Convertible
Debenture and the exercise of the warrants under the Convertible
Debenture are subject to a restricted period on resale of four
months and one day.
The Convertible Debenture also grants the holder a right of
first refusal with respect to private placements by the Company.
Thus, as long as the Convertible Debenture is in effect or up until
full payment is made, the Company must first offer the holder the
option of subscribing to the Company's private placements under the
same terms and conditions as provided for in such private
placements, to allow the holder the option of maintaining its
percentage holding of common shares of the Company.
These transactions are subject to regulatory approval.
About Conway Resources Inc.
Conway is a mining exploration company with four gold properties
and one rare metals property in Quebec. Its main asset is the
Belleterre Mine property. The property is the site of the old
Belleterre mine, which produced 350 tonnes per day from four shafts
between 1936 and 1959. A total of 2.18 million tonnes of ore at an
average grade of 10.73 g/t Au were extracted from the mine,
primarily from vein 12 (95% of production). Earlier reports
indicate the presence of at least 21 veins on the property.
More information can be found on Conway's website at
www.ressources-conway.com.
Forward-Looking Statements
This press release contains certain forward-looking statements
that might involve uncertainty, time frames, and/or known and
unknown risks beyond the Company's control. The Company's actual
results, performance and achievements may differ materially from
the results, performance and achievements implied by such
forward-looking statements. Factors that could cause actual results
to differ from those implied by forward-looking statements include,
in particular, changes in the market gold price, the value of the
Canadian dollar or the grade of the ore mined and unanticipated
difficulties in mining activities that could have an impact on
operating revenues and costs, as well as uncertainty regarding
government regulations.
Neither TSX Venture Exchange Inc. nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange Inc.) accepts responsibility for the adequacy or
accuracy of this press release.
Contacts: Conway Resources Inc. Laurent Beaudoin President and
Chief Executive Officer 418-871-3334 conway@ressources-conway.com
www.ressources-conway.com Francois Kalos Director 450-993-0828
kalos@solak.ca
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