Transaction Announcement
A transaction securing the growth of Armadillo Resources Ltd.
May 15, 2013, Vancouver, BC – (CNSX:ARO) Big Ben Venture Partner AB, a
private advisory firm announced today that Armadillo Resources Ltd. has
signed a Special Private Placement Agreement for CDN $10,000,000,
subject to regulatory approval, with a US investor. The funds will be
used for expansion and to advance the exploration and development of
our mining properties as well as for property acquisitions and general
corporate use.
The initial plan is to commence work on Armadillo's newly acquired
Flagstaff Gold Mine in Oregon State, USA. The Company intends to
complete an initial program of sampling, trenching, and drilling
including an upgrade to the existing tunnels to gain access and verify
the existing ore body, as noted in the reports located on its website.
After verification, Armadillo will pay US $50,000.00 and issue the old
owners Dimari Enterprises LLC of Pasco, Washington 500,000 common
shares of the Company. A further payment of US $50,000 per anniversary
date or a 25% royalty from production, whichever is the greatest to a
maximum total payable of US $5,000,000, will also be required.
There will be a total commitment fee of 4,000,000 common shares payable
to the investor for this Private Placement Agreement.
The investor has no outside investors and is considered a private group
run by its principals, similar to a merchant bank that invests its own
capital and as such is seeking capital appreciation through
identification and funding and growth with potential companies.
Big Ben Venture is a qualified partner with more than 20 years experience in
raising capital, with offices in Toronto, Stockholm, Winnipeg, and
Detroit.
The information contained herein is
for informational and discussion purposes only and is not intended to
be, nor shall it be, construed as legal, tax or investment advice or as
an offer, or the solicitation of any offer, to buy or sell any
securities. Before entering into any investment you should thoroughly
review the respective transaction documents with your legal, tax and
investment advisors.
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Armadillo
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$10,000,000
Equity Line Facility
Common stock
May 15, 2013
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Transaction
Overview
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- Armadillo may,
at its sole and exclusive option, periodically sell to the investor
shares of its common stock, SEK 0.01 par value per share (the "Common
Stock") for a total purchase price of up to ten million dollars
($10,000,000)
- For
each
share of Common Stock purchased the investor will pay to the Company
eighty-five (85%) of the lowest daily volume weighted average price of
the Common Stock during the 15 consecutive trading days following
delivery by the Company of an advance notice. Such advance will not
exceed more than 250% of the average daily trading volume.
- Proceeds to
be used to purchase mining equipment and for additional flexibility to
fund the growth strategy
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