Zaruma Gold Mining Ltd., the company domiciled in the British Virgin Islands, announced that pursuant to a private placement financing by Zaruma Resources Inc., it subscribed for and acquired ownership of 390,920,000 subscription receipts of Zaruma Resources. The price is Cdn$0.05 per Subscription Receipt, for aggregate consideration of Cdn$19,564,000. This represented approximately 83.79% of the 466,562,418 Subscription Receipts issued pursuant to the Private Placement. Each Subscription Receipt represents the right to receive one unit of the Corporation, without payment of additional consideration and without any further action on the part of the BVI company.
Prior to the acquisition of the Subscription Receipts, Zaruma Gold Mining Ltd. owned 2,300,000 common shares and 2,300,000 warrants of the corporation. Upon the satisfaction of the Escrow Release Conditions and the conversion of the Subscription Receipts into Units of the Corporation, the BVI company will have ownership of 393, 220,000 common shares. This amount represents approximately 66.63% of the then issued and outstanding common shares of the corporation on an undiluted basis, or 786,440,000 Common Shares or approximately 79.97% on a partially diluted basis.
The subscription receipts were acquired by the BVI company for investment purposes.