Oban Files Early Warning Report in Connection With Agreements to Acquire BonTerra Shares
TORONTO, ONTARIO--(Marketwired - Jul 7, 2015) - Oban Mining Corp. (TSX:OBM) ("Oban" or the "Company") announces that it has filed an Early Warning Report in connection with the acquisition pursuant to private agreements of common shares ("BonTerra Shares") of BonTerra Resources Inc. ("BonTerra").
The Company has acquired pursuant to purchase agreements dated July 6, 2015 (the "Agreements") an aggregate of 6,527,274 BonTerra Shares (the "Purchased Shares") at a price of $0.135 per Purchased Share for an aggregate purchase price of $881,182 (the "Transaction").
The Purchased Shares were acquired by Oban in connection with the completion of (i) a private placement conducted by BonTerra pursuant to which BonTerra issued and sold 3,000,000 units of BonTerra (the "BonTerra Units"), with each BonTerra Unit comprised of one BonTerra Share and one warrant entitling the holder thereof to subscribe for one BonTerra Share (the "BonTerra Unit Placement"), (ii) a private placement conducted by BonTerra pursuant to which BonTerra issued and sold 6,527,274 BonTerra Shares issued as flow-through shares (the "BonTerra Flow-Through Share Placement"), and (iii) a private placement pursuant to which BonTerra issued and sold 2,083,350 units of BonTerra (the "BonTerra FT Units"), with each BonTerra FT Unit comprised of one BonTerra flow-through share and one warrant entitling the holder thereof to subscribe for one BonTerra Share (the "BonTerra Flow-Through Unit Placement" and, together with the BonTerra Unit Placement and the BonTerra Flow-Through Share Placement, the "BonTerra Placements").
The Purchased Shares represent 19.9% of the issued and outstanding BonTerra Shares after giving effect to the completion of the BonTerra Placements. Before giving effect to the Transaction, the Company did not hold legal or beneficial ownership over any BonTerra Shares or other securities of BonTerra.
Oban acquired the Purchased Shares for investment purposes. Oban may increase or decrease its ownership interest in BonTerra depending on, among other factors, market conditions and other factors relevant to Oban's investment decisions. Other than the Purchased Shares, Oban has no current intention to increase its beneficial ownership of, or control or direction over, additional securities of BonTerra.
This news release is being issued under the early warning provisions of Canadian securities legislation.
A copy of Oban's Early Warning Report containing further details of the Transaction can be found on SEDAR at www.sedar.com under BonTerra's profile.
About Oban Mining Corporation
Oban Mining Corp. is a mineral exploration company focused on the acquisition, exploration, and development of precious metal resource properties in Canada. The Company holds an option to acquire from NorthStar Gold Corp. up to a 70% interest in the Miller Project in northern Ontario pursuant to an option agreement with NorthStar Gold Corp. The Company also holds options with other third parties to acquire a 100% undivided interest in the Côté Property, the Golden Dawn Project, the Hunter Property and other properties in the vicinity. The Company has additionally acquired a 100% interest in the Roach Property in northern Ontario and has a 100% undivided interest in a large area of claims in the Urban Barry area of Quebec. The Company is well financed with over $10M in cash.
On June 30, 2015, the Company announced the entering into of arrangement agreements providing for the acquisition by the Company of each of Eagle Hill Exploration Corp., Ryan Gold Corp., Corona Gold Corp. and Temex Resources Corp. by way of plans of arrangement. Completion of the arrangements is subject to, among other things, receiving the requisite approvals of the shareholders of each of the parties and to receiving the approval of the Toronto Stock Exchange. The combination of these five companies will create a leading Canadian focused gold exploration and development company.
Oban's head office is located at 150 York Street, Suite 410, Toronto, Ontario, M5H 3S5.
