Oban Mining Corporation (TSX:OBM) (“Oban”) has agreed to acquire 4,930,000 common shares (“MEK Shares”) in the capital of Metals Creek Resources Corp. (“Metals Creek”) for total consideration of approximately $346,850, of which (i) 1,760,000 MEK Shares will be acquired pursuant to a subscription agreement with Metals Creek (the “Subscription Agreement”), and (ii) 3,170,000 MEK Shares, issued as “flow-through shares”, will be acquired pursuant to a purchase agreement dated November 11, 2015 (the “Purchase Agreement”).
As a result of the 1,760,000 MEK Shares to be acquired by Oban pursuant to the Subscription Agreement and the 3,170,000 MEK Shares to be acquired by Oban pursuant to the Purchase Agreement (collectively, the “Purchased Shares”), Oban has agreed to acquire ownership of 4,930,000 MEK Shares, representing approximately 19.9% of the total issued and outstanding MEK Shares. Oban did not previously hold legal or beneficial ownership over any MEK Shares or other securities of Metals Creek.
Pursuant to the Subscription Agreement, Oban will be granted the right to nominate one member to the board of directors of Metals Creek, along with a pre-emptive right to maintain its pro rata 19.9% interest in Metals Creek.
The 4,930,000 Purchased Shares will be acquired by Oban for investment purposes. Other than the Purchased Shares, Oban has no current intention of increasing its ownership of, or control or direction over, additional securities of Metals Creek. Oban may, from time to time, increase or decrease its ownership of MEK Shares or other securities of Metals Creek depending on market and other conditions.
This news release is being issued in accordance with National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues in connection with the filing of an early warning report dated November 11, 2015. The early warning report respecting the Private Placement has been filed on System for Electronic Document Analysis and Review (“SEDAR”) at www.sedar.com under Metals Creek’s issuer profile. To obtain a copy of the early warning report filed by Oban, please contact John Burzynski at (416) 363-8653 or refer to the SEDAR at www.sedar.com under Metals Creek’s issuer profile.
Dundee Securities Ltd. has acted as financial advisor to Oban with respect to the Private Placement.
Oban’s head office is located at 155 University Avenue, Suite 1440, Toronto, Ontario M5H 3B7.