Kola Closes Private Placement Financing
KOLA MINING CORP.
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7 Phone: +1.604.685.9316 / Fax: +1.604.683.1585
NEWS RELEASE November 12, 2013
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
KOLA CLOSES PRIVATE PLACEMENT FINANCING
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 October 30, 2013, as amended on November 7, 2013, has closed. The Company has issued 658,800 units at a price of $0.07 per unit (the “Unit”) for gross proceeds of up to $46,116. Each Unit consists of one common share and one half of one common share purchase warrant (the “Warrant’). Each whole Warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.10 per common share until November 12, 2018.
Securities issued under the Financing have a four-month hold period expiring on March 13, 2014.
The net proceeds from the private placement financing will be used for general working capital purposes including general exploration costs to seek out and conduct due diligence on resource property acquisition opportunities. Certain insiders of the Company participated in the Financing and as such participation is considered a related party transaction within the meaning of MI 61-101, the Company relied on the exemptions from the valuation and minority shareholder approval requirements contained in sections 5.5 and 5.7 of MI 61-101 in respect of such insider participation.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
The Company also announces that further to the TSX Venture Exchange (TSX.V) bulletin of November 8, 2013, it is now listed as a Tier 2 issuer rather than a Tier 1 issuer. This reclassification will not result in a change to the Company’s trading symbol “KM” and is not expected to have a material impact on the Company’s operations. At the appropriate time, when the Company meets Tier 1 listing requirements, an application will be made to the TSX.V to upgrade from Tier 2 listing status.
Company Information
On behalf of the Board,
1305 – 1090 West Georgia St., Vancouver, BC, V6E 3V7 Company Contact: Nick DeMare +1 (604) 685 9316
“Nick DeMare”
Nick DeMare, President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.