Kola Provides Update on Financing and Loan
KOLA MINING CORP.
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7 Phone: +1.604.685.9316 / Fax: +1.604.683.1585
NEWS RELEASE July 31st 2013
KOLA PROVIDES UPDATE ON FINANCING AND LOAN
Vancouver, Canada – Kola Mining Corp. (“Kola” or the “Company”) (TSXV:KM) Mr. Nick DeMare, President, reports that the private placement financing (the “Financing”) announced by the Company on July 23, 2013, has been oversubscribed. The Company now proposes to issue up to 4,800,000 units at a price of $0.015 per unit (the “Unit”) for gross proceeds of up to $72,000. Each Unit consists of one common share and one half of one common share purchase warrant (the “Warrant’). Each whole Warrant will entitle the holder to purchase one common share of the Company for five years from the closing date at five cents per common share during the first year and at 10 cents per common share during years two to five, pursuant to the requirements of TSX Venture Exchange's temporary relief measures.
The Company is moving forward to complete the Financing to raise the necessary funds to pay essential costs to maintain the Company in good standing. The Company has received conditional approval to its filings and is now proceeding to close the Financing.
The Company still carries a significant debt load and management is continuing in its efforts to reduce its debt. As announced by the Company on July 19, 2013, the Company has made significant progress with the elimination of the amount owing on the Souker property agreement of almost $1.9 million. In addition, discussions are ongoing with creditors to obtain concessions and the current focus is on the reduction of the amount owing pursuant to the Company's outstanding debentures. The Company currently has a liability of approximately $765,000 and holders of the debentures have agreed to accept payment of $500,000. The Company has obtained a loan from a private company controlled by the President of the Company which has allowed the Company to conclude the agreement with the debenture holders and receive a substantial write off of debt. The terms of the loan from the related party will be subject of consideration by an independent committee of the Board and will be announced once settled.
On behalf of the Board, Company Information
1305 – 1090 West Georgia St., Vancouver, BC, V6E 3V7 Company Contact: Nick DeMare +1 (604) 685 9316
“Nick DeMare”
Nick DeMare, Director
Forward Looking Statements This Company news release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information available to the Company's management as of the date of this news release. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer or landholders relations, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
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