GNCC Capital, Inc. – Clarification on Our First Corporate & Strategic Update
April 10 2014 - 5:00AM
Business Wire
April 10, 2014 - GNCC Capital, Inc. (OTC:GNCP) updated on April
9, 2014 in a Press Release and in respect of the:
EXTENSION OF AND ADDITIONAL CREDIT FACILITIES & THE USE OF
PATENTED RADAR SCANNING TECHNOLOGY:-
Key points:-
- The Company’s intention to utilize the
services of a specialist radar geological scanning service provider
in early May of 2014, initially on its “White Hills, Burnt Well,
Kit Carson and Clara” Exploration properties; it is estimated to
cost an initial amount of circa $500,000 in respect of those
initial properties. This technology will be expanded in due
course for use on all of our exploration properties and where
identified, will result in the need for reduced drilling
for core samples as well as an expedited timeline to getting better
reserve and resource estimates.
- As the Company has significantly
increased its exploration expenditure and intends to continue to do
so, Management believes that significant additional credit
facilities are required by the Company for the remainder of this
fiscal year.
- Due to the Company embarking on a drive
to expedite and define the potential values of the properties under
license, our spend rate will increase and therefore the Company is
expecting to announce the raising of an additional amount of $1
million in cash for the very short term. It is now highly likely
that the total funds being sought by the Company, in the very near
term, will be significantly higher.
Following receipt of a number of e mails from concerned
stockholders, following this Press Release, Company Management
wishes to clarify this and very simply:
- Monies raised by the Company to fund
these endeavors will be used to pay cash to meet these costs.
- No shares of restricted Common Stock
are being issued by the Company to obtain this additional
funding.
- Any additional Long Term Convertible
Notes issued to third parties in respect of this actual cash raised
by the Company, will be long term. Regulation 144 prohibits these
Convertible Loan Notes from being converted into “free trading”
shares of the Company’s Common Stock and for a period of at least
one year.
- Any potential dilution caused by any
conversion of these new Convertible Loan Notes is a year away and
it is expected that the results and benefits obtained by the
expenditure of this cash on radar scanning and related expenses, in
the immediate term, will far outweigh the potential threat of
additional shares of Common Stock entering the “free float” in over
a year.
It is very clear to Company Management that they need to justify
and set out their rationale for this cash expenditure; and to that
end, we reiterate:
To this end, Ted Blom has undertaken in the next few days and
not weeks, to prepare and to publish a Management Discussion Paper
on the rationale and uses of this particular radar scanning
technology and its uses for identifying geological anomalies and
potential ore body delineation. This will highlight the
benefits of using “Cutting Edge Mining Technologies” and as to why
the Company will be attempting to deploy this technology on our
properties under license.
Full details will be published at such time as each of these
various arrangements are consummated.
About GNCC Capital, Inc.:
GNCC Capital, Inc. is primarily a Gold Exploration Company, with
a secondary focus on Silver Exploration. The initial exploration
properties are located in Arizona and consist of “White Hills,
Esther Basin, Burnt Well, Clara, Kit Carson, Silverfields and Potts
Mountain". The Company intends to create significant value for its
initial portfolio of properties through continued exploration,
joint ventures, and through the acquisition of additional Gold and
Silver Exploration assets.
Forward-Looking Statements:-
This press release may contain forward-looking statements. The
words "believe," "expect," "should," "intend," "estimate,"
"projects," variations of such words and similar expressions
identify forward-looking statements, but their absence does not
mean that a statement is not a forward-looking statement. These
forward-looking statements are based upon the Company's current
expectations and are subject to a number of risks, uncertainties
and assumptions. The Company undertakes no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise. Among the important factors that could
cause actual results to differ significantly from those expressed
or implied by such forward-looking statements are risks that are
detailed in the Company's filings, which are on file with the OTC
Markets Group.
GNCC CAPITAL, INC.N.E. “Ted” Blom – President &
CEOTelephone: (702) 951-9793E Mail:
corporate@gncc-capital.comorInvestor Relations Contact:E Mail:
investor@gncc-capital.comWeb Site: www.gncc-capital.comTwitter:
https://twitter.com/GNCCCapital
[We would be very appreciative if all investor questions be
directed to this E mail address and not to our telephone voicemail
until such time as we have appointed a dedicated Investors
Relations Firm who will deal with all telephonic enquiries]
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