Highbank Arranging a $900,000 Working Capital Financing & LNG Pipeline Update
VANCOUVER, BC--(Marketwired - May 15, 2015) - Highbank Resources Ltd. (the "Company"), (TSX VENTURE: HBK) (FRANKFURT: V7O)
Financing:
Highbank Resources Ltd. ("Highbank") is arranging a $900,000 financing. As a result of additional expenditures incurred during pre-production; commissioning of the production equipment; further site and roadway upgrades; changes required to the aggregate wash plant in order to maximize output; and costs incurred in the preparation of the Preliminary Economic Assessment ("PEA"); Highbank requires additional financing before product sales and cash inflows.
The Company has arranged a $250,000 bridge loan, without interest, to be repaid when the $900,000 financing is approved. The financing will not result in any further dilution of the share capital, no share loan bonuses will be issued, and is expected to be repaid from production sales. General terms are repayment of $1.00 per ton from sales until the $900,000 financing is repaid and $0.50 per ton interest royalty for the life of operations.
$675,000 is being arranged from a non-related third party and $225,000 from Melsar Management Inc. (a company controlled by William Loucks, Director).
The financing is subject to TSX Venture Exchange approval.
Prince Rupert Gas Transmission announces project agreement with Kitselas First Nation
TransCanada Corp's Prince Rupert Gas Transmission Ltd. ("PRGT") has confirmed a project agreement with the Kitselas First Nation ("Kitselas") of Northern B.C. that provides the Kitselas with financial and other benefits related to the pipeline project.
Kitselas Chief Joe Bevan expressed support for the project by saying, "The pipeline project and the activity surrounding it are going to impact Kitselas and PRGT recognizes this. They have been very good to work with and this agreement not only provides us with economic benefits and employment training, but it ensures that all environmental concerns have been adequately addressed."
The Kitselas Project Agreement joins previously-announced PRGT agreements with the Nisga'a Nation and Gitanyow First Nation.
PRGT is proposing to design, build, own and operate (subject to regulatory and commercial approvals) a 900 km natural gas pipeline to deliver natural gas from a point near Hudson's Hope to the proposed LNG facilities near Prince Rupert. Project details can be found at www.princerupertgas.com
Highbank in the News:
-'Full Speed Ahead' - Rock Products. April 28, 2015 http://ow.ly/MYfiN
-'Swamp Point North begins aggregate production' - Northern View, Prince Rupert. April 29, 2015 http://ow.ly/MYdZy
-'Highbank Resources commissions aggregate plant' -Resource World Magazine, May 12, 2015 http://ow.ly/MYfvL
Highbank is continuing its efforts to secure long-term contracts for its aggregate products from Swamp Point North.
On behalf of the Board of Directors of
Highbank Resources Ltd.
"Gary Musil"
Gary Musil
CFO/Director
Neither the 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.
This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Forward-looking statements are projections of events, revenues, income, future economic performance or management's plan and objective for future operations and include, without limitation, statements with respect to the anticipated production from the Swamp Point North Aggregate Project, the realization of mineral estimates, success of mining operations, the timing and amount of estimated future production, title disputes or claims, environmental risks, limitations on insurance coverage, current and anticipated purchase negotiations and arrangements, requirements for additional capital; and government regulation of mining operations. In some cases, you can identify forward- looking statements by the use of terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. By their very nature fo rward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors, including: fluctuations in worldwide prices and demand for aggregates; changes in project parameters as plans continue to be refined; possible variations in grade and or recovery rates; accidents, labour disputes as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, are filed and available for review on SEDAR at www.sedar.com.
Contact
Highbank Resources Ltd.
#600 - 625 Howe Street, Vancouver, B.C. V6C 2T6
Ph.: (604) 683-6648
Fax: (604) 683-1350
E-Mail: highbank@telus.net
Website: www.highbankresources.com
