Oct 25 2010
Esperanza Resources Corp. ("Esperanza") (TSX VENTURE:EPZ) is pleased to announce the strategic investment of $1.45 million in Global Minerals Ltd. (TSX VENTURE:CTG)
The investment will ultimately yield Esperanza a 36.4% equity interest in Global. Global's primary asset is the Streborna silver-copper deposit in Slovakia. This is an advanced stage exploration project.
Bill Pincus, Esperanza's President, said, "This investments allows us to get a firm position in a developing project that we are confident will yield excellent results."
Global raised $2,550,000 through the issuance of 23,066,667 common shares at a price of $0.075 per share for gross proceeds of $1,730,000 and 10,933,333 special warrants at a price of $0.075 per special warrant for gross proceeds of $820,000. Esperanza purchased 8,400,000 common shares resulting in a 19.9% ownership interest in Global. In addition, Esperanza purchased all of the special warrants, which will convert automatically into 10,933,333 common shares, without payment of additional consideration, upon receipt of approval by Global's shareholders of Esperanza becoming a 'control person' of Global (holding a 36.4% ownership interest in Global), which approval is to be sought at Global's Annual and Special General Meeting scheduled to be held on Friday, December 3, 2010. If such shareholder approval is not obtained, the special warrants will convert automatically into a non-convertible secured debenture in the principal amount of $820,000 bearing interest at 8% per year, with a term of 18 months. Esperanza's investment was made section 2.10 of National Instrument 45-106 Prospectus and Registration Exemptions of the Canadian Securities Administrators. Presently, Esperanza does not have any intention of acquiring any further securities of Global, but may acquire ownership of or control over further securities in the future depending upon market circumstances.