Vaudreuil-Dorion (Quebec), October 23rd, 2013 - Rocmec Mining inc. (the "Corporation" or "Rocmec") (TSX-V Symbol: RMI), is pleased to provide a corporate update following the signing of the Memorandum of Understanding with 8431469 Canada inc., conducting its business under the name Nippon Dragon Resources ("Nippon Dragon") as announced by way of a press release dated May 23rd, 2013.
With regards to the reverse takeover (RTO), significant advancements have been made, one of which is the completion of the due diligence initiated by Nippon Dragon. Regulatory authorities are still working to complete the required inquiries pertaining to the approval of personal 2A forms submitted by Nippon Dragon and the demonstration of the value of the Pershing property to be included in the reverse takeover.
The Corporation also announces that it has just completed a private placement in the form of a convertible debenture totaling $255,000 with the same investor of the private placement announced on May 27th, 2013, being Nippon Dragon.
The convertible debenture has a term of five (5) years, maturing on October 1st, 2018 and the conversion terms are subject to the highest rate of following two possibilities:
-The market price, as defined as the total value of the shares traded over the first five trading days following the resumption of trading divided by the total volume over this same period; or
- $0.05 per share following the resumption date of trading within the first year following the issuance of the debenture, and $0.10 over the remaining period through to the maturity date of the debenture.
The debenture bears an interest rate of 5% per year and no commissions were paid for the financing. The funds raised will be used to meet the minimum requirements of the Corporation in order to continue its operations until the holding of the Corporation's annual and special shareholders meeting, which is expected to be held before the end of the year.
Concerning the Corporation's joint-venture in the Rey Salomon project located in Peru, Rocmec wishes to inform its shareholders that the pace of exploration work and ore grade confirmation is dictated by the cash flow generated from its operations. The Corporation generates periodic and encouraging monthly income from gold sales by processing the mineralized ore extracted from exploration drifts and other work areas that are mined by conventional means. The gold sales and related work will enable the parties to evaluate and get a better understanding as to the scope of the project. As previously agreed upon and made public in a press release dated October 19th, 2012, our joint-venture partner, Chazel Capital has agreed to inject additional funds in order to ensure adequate and continued development of the project, the effect of which reduced Rocmec's interest in the project to 37% for the time being.
Additionally, the Corporation wishes to inform its shareholders that the request for the extension of 3,000,000 warrants announced in a press release on August 23 rd, 2013 was denied by the Exchange resulting in the expiration of the above mentioned warrants.
Rocmec Mining Inc. is active in the exploration and the development of gold resources in Quebec and Peru. The Corporation holds a gold property with resources recognised in accordance with NI43-101, a modular treatment plant and also an exclusive license for the thermal fragmentation mining method for exploiting narrow-vein ore deposits.
The company's growth strategy is based on:
-The development of its gold deposits with the objective of producing revenue from its operations;
-Increasing the value of its mining assets by prioritizing the exploration targets; and
-The commercialisation and employment of its thermal fragmentation technology.
For additional information:
John Stella, Investor relations (514) 718-7976 email@example.com
Andre Savard, President & CEO (450) 510-4442 firstname.lastname@example.org
Neither 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 press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration and production activities and events or developments that the Corporation expects, are forward looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
Corporation Miniere ROCMEC Mining Inc. 162 Saint-Charles Avenue, Vaudreuil-Dorion (Quebec) J7V 2L1
Tel: (450) 510-4442 Fax: (450) 510-9901 www.rocmec.com
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