VANCOUVER, British Columbia, Nov. 16, 2017 (GLOBE NEWSWIRE) -- Latam Resources Pty Limited (“Latam” or the “Company”) is pleased to announce that pursuant to a subscription agreement entered into between Latam and NRG Metals Inc. (“NRG”) dated November 15, 2017 (the “Subscription Agreement”) Latam has acquired direct or beneficial ownership of an aggregate of 9,800,000 common shares (“Common Shares”) in the capital of NRG and 9,800,000 warrants of NRG (“Warrants”) entitling the holder thereof to purchase one Common Share at an exercise price of $0.20 for a period of three years from the distribution date (the “Acquisition”).
Prior to the Acquisition, Latam did not beneficially own or control, directly or indirectly, any securities of NRG. After completion of the Acquisition Latam holds approximately 9.66% of the issued and outstanding Common Shares.
The Common Shares were acquired by Latam for business related investment purposes. Pursuant to the Subscription Agreement Latam subscribed for an aggregate of 980,000 Units and as such Latam expects to acquire 620,000 additional Units upon clearance of the personal information forms by the TSX Venture Exchange. Latam does not have any definitive plans or future intentions which relate to NRG’s current business or corporate structure. In connection with the Acquisition, NRG and Latam entered into a warrant exercise agreement which prevents Latam from being able to exercise any Warrants that will cause Latam to hold more than ten percent (10%) of NRG’s issued and outstanding Common Shares as of the date of the Warrant exercise. Latam and NRG also entered into an ancillary rights agreement pursuant to which Latam may nominate certain individuals as directors of NRG. Further details regarding the Acquisition can be found on SEDAR under NRG’s company profile at www.sedar.com.
This Press Release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which also requires a report to be filed with the applicable securities commissions or similar regulatory authorities in Canada, which report will contain additional information with respect to the foregoing matters (the “Early Warning Report”). A copy of the Early Warning Report will be filed on SEDAR under NRG’s company profile at www.sedar.com and can also be obtained by contacting the company at the number listed below.
For further information, please contact:
Latam Resources Pty Limited
c/o Chengdu Chemphys Chemical Industry Co., Ltd.
Tower 3-1101, Yintai Center, 1199 North Tianfu Ave, Hi-Tech District, Chengdu
610041, P.R. China
This news release contains “forward-looking information” within the meaning of applicable securities laws relating to, future plans and intentions of Latam, the appointment of certain persons as directors and officers of NRG and associated matters. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct or enduring. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things that the plans of Latam may change. The statements in this press release are made as of the date of this release.
Not for distribution to U.S. Newswire Services or for dissemination in the United States of America. Any failure to comply with this restriction may constitute a violation of U.S. Securities laws.