Esperanza Announces Strategic Investment in Global Minerals Ltd.
October 21 2010 - 5:28PM
Marketwired
Esperanza Resources Corp. ("Esperanza" or the "Company") (TSX
VENTURE: EPZ) is pleased to announce the strategic investment of
$1.45 Million in Global Minerals Ltd. ("Global"). The investment
will ultimately yield Esperanza a 36.4% equity interest in Global.
Global's primary asset is the Streborna silver-copper deposit in
Slovakia. This is an advanced stage exploration project.
Global raised $2,550,000 through the issuance of 23,066,667
common shares at a price of $0.075 per share for gross proceeds of
up to $1,730,000 and 10,933,333 special warrants at a price of
$0.075 per special warrant for gross proceeds of $820,000.
Esperanza subscribed for 8,400,000 common shares resulting in a
19.9% ownership interest in Global. In addition, Esperanza
subscribed for all of the Special Warrants, which will convert
automatically into 10,933,333 common shares, without payment of
additional consideration, upon receipt of approval by Global's
shareholders of Esperanza becoming a 'control person' of Global
(36.4% ownership interest after giving effect to the conversion of
the special warrants into common shares), which approval is to be
sought at the Global's Annual and Special Meeting scheduled to be
held on Friday, December 3, 2010. If such shareholder approval is
not obtained, the special warrants will convert automatically into
a non-convertible secured debenture in the principal amount of
$820,000 bearing interest at 8% per annum, with a term of 18
months. Global paid a total of $156,380 in finders' fees. All
securities issued are subject to a four month hold period expiring
February 21, 2011. The proceeds from the private placement will be
used for debt retirement and working capital.
Bill Pincus, Esperanza's President, said, "This investments
allows us to get a firm position in a developing project that we
are confident will yield excellent results." More information on
the Streiborna project can be found on Global's website:
www.globalminerals.com.
About Esperanza
Esperanza is an emerging producer company focused on advancing
the development of its two principal properties: the San Luis gold
and silver joint venture in Peru and the 100%-owned Cerro Jumil
gold project in Morelos State, Mexico. It is also actively
investigating 17 other exploration interests in Peru and
Mexico.
SAFE HARBOR: Some statements in this release are forward-looking
in nature. The United States Private Securities Litigation Reform
Act of 1995 provides a "safe harbor" for certain forward-looking
statements. Such statements include statements as to the potential
of the Cerro Jumil property, the ability to finance further
exploration, permit drilling and other exploration work, and the
availability of drill rigs.
The forward-looking statements involve risks and uncertainties
and other factors that could cause actual results to differ
materially, including those relating to exploration and bringing
properties into production. Please refer to a discussion of some of
these and other risk factors in Esperanza's Form 20-F filed with
the U.S. Securities and Exchange Commission. The forward-looking
statements contained in this document constitute managements'
current estimates as of the date of this release with respect to
the matters covered herein. Esperanza expects that these
forward-looking statements will change as new information is
received and that actual results will vary, possibly in material
ways. Forward-looking statements are based on the beliefs,
expectations and opinions of management on the date the statements
are made, and the company does not assume any obligation to update
forward-looking statements if circumstances or management's
beliefs, expectations or opinions should change. For these reasons,
investors should not place undue reliance on forward-looking
statements.
Neither the TSX Venture Exchange nor the Investment Industry
Regulatory Organization of Canada accepts responsibility for the
adequacy or accuracy of this release.
Contacts: Esperanza Resources Corp. Bill Pincus President and
CEO Toll Free: (866) 890 5509 info@epzresources.com
www.epzresources.com
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