Asia Now Resources Corp., a mineral exploration company focused on developing ore deposits in China, announced the closing of a non-brokered private placement whereby the Chinese company issued 42,400,000 new common shares to China Gold Pte. Ltd., an indirect wholly-owned subsidiary of Hong Kong-listed Lippo China Resources Limited, and 2,842,000 new common shares to Prime Orient Investments Limited, the company incorporated in the British Virgin Islands and engaged in investment holding.
By terms of the transaction, the price will be US$0.30 per common share for gross proceeds of approximately US$13,572,600. The net proceeds from the private placement will be used primarily for exploration activities in Yunnan Province, PRC.
As a result of the private placement, China Gold becomes the holder of approximately 49.9% of all issued and outstanding common shares of Asia Now on an undiluted basis and approximately 47.7% on a fully diluted basis. Immediately after closing of the transaction, BVI-registered Prime Orient holds approximately 2.6% of all issued and outstanding common shares of Asia Now on an undiluted basis, and approximately 2.4% on a fully diluted basis.
The shares issued to China Gold as well as the shares issued to Prime Orient are subject to a “hold period” expiring on March 13, 2011, established in accordance with applicable securities legislation and the TSX Venture Exchange Corporate Finance Manual.