Plains Creek announces closing of second tranche of non-brokered
private placement of senior secured convertible debentures
VANCOUVER,
Feb. 7, 2013 /CNW/ - Plains Creek
Phosphate Corporation (the "Company") (TSX‐V: PCP) is
pleased to announce that yesterday it closed the second tranche of
its non-brokered private placement (the "Private
Placement") of senior secured convertible debentures (the
"Debentures") of the Company for gross proceeds of
$500,000.
The Debentures have a face value of $1,000, each bearing interest of 10% per annum,
fully secured by the assets of the Company. The Debentures all rank
pari passu in priority among each of them and the principal
amount and all accrued and unpaid interest is due and payable in
full on March 31, 2014.
Every $1,000
principal amount of the Debentures is convertible at any time, at
the holder's option: (a) initially, into 10,000 common shares of
the Company at a price of $0.10 per
common share; and (b) following the Share Consolidation, into
common shares at a conversion price equal to $0.01 per common share multiplied by the
consolidation ratio. Security for the Debentures shall become
enforceable upon the occurrence of certain events of default, which
will include, among other things, if the Company fails to meet
certain restructuring requirements pursuant to the terms of the
Debentures on March 31, 2013,
respectively, or fails to pay the principal amount of the
Debentures when they become due and payable.
The Company will use the proceeds of the Private
Placement for property payments on its Farim Phosphate mineral
property and for related in-country expenses in Guinea-Bissau and for additional working
capital.
The Debentures are subject to a statutory
four-month hold period from the date of issuance.
About Plains Creek Phosphate
Corporation
Plains Creek Phosphate Corporation is a Canadian
mining exploration and development company focused on advancing its
Farim Phosphate Project in Guinea‐Bissau, West Africa through its subsidiary, GB
Minerals AG.
The Company's shares are listed on the TSX
Venture Exchange under the trading symbol "PCP". For additional
information, please visit us at www.plainscreek.com.
ON BEHALF OF THE BOARD
"Angel Law"
Angel Law
Chief Financial Officer and Corporate Secretary
Cautionary Statement
Statements in this release may be viewed as
forward‐looking statements. Such statements involve risks and
uncertainties that could cause actual results to differ materially
from those projected. There are no assurances the Company can
fulfill such forward‐statements and the Company undertakes no
obligation to update statements. Such forward looking statements
are only predictions; actual events or results may differ
materially as a result of risks facing the Company, some of which
are beyond the Company's control.
The reader should be cautioned that there are
risks that could affect the potential development of the Farim
Phosphate Project's (the "Project") mineral resources, which
include: the political instability in Africa and Guinea‐Bissau in particular, which
is where the Project is located; and that additional financing will
be required to ultimately develop the Project and the ability to
obtain such financing on favorable terms will be affected by
prevailing market conditions. A more detailed discussion of such
risks are outlined in the Company's Management's Discussion &
Analysis and the Reports, all of which are filed under the
Company's profile on SEDAR at www.sedar.com.
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.
SOURCE Plains Creek Phosphate Corp.