Last updated on April 16, 2014 at 6:17 EDT

Mukuba Announces Closing of Convertible Debenture Offering

August 28, 2012

TORONTO, Aug. 28, 2012 /CNW/ – Mukuba Resources Limited (TSX-V:MKU) (“Mukuba” or the “Company”) is pleased to announce that it has closed a private placement of
convertible debentures in the aggregate principal amount of $250,000
due to mature on August 27, 2013 (the “Debentures”) for gross proceeds
of $250,000.

The Debentures are part of a larger private placement financing of the
Company (the “Private Placement”) previously announced on July 12,
2012. The Private Placement will comprise a maximum of 12,500,000 units
(the “Units”) at a subscription price of $0.12 per Unit. Each Unit will
consist of one common share and one common share purchase warrant of
the Company (each a “Warrant”) entitling the holder thereof, during a
period of 24 months from the date of closing of the Private Placement
(the “Closing”), to purchase one of the Company’s common shares at an
exercise price of $0.16 per common share.

The Private Placement is conditional upon a consolidation of the
Company’s outstanding common shares at a ratio of four
pre-consolidation common shares for one post-consolidation common share
(the “Consolidation). The Consolidation requires approval by the
holders of the Company’s common shares at a meeting of shareholders
expected to occur on August 30, 2012. All references to Units are on a
post-Consolidation basis unless otherwise identified.

The Debentures are convertible into 2,083,333 Units upon Closing of the
Private Placement. These Units are included in the 12,500,000 Units
described above. In the event that the Consolidation and the Private
Placement are not completed by December 27, 2012, the Debentures will
bear interest at a rate of 10% effective from the date of issue and be
convertible into shares at a rate of $0.10 per common share on a
pre-Consolidation basis.

Completion of the Private Placement is subject to the receipt of all
required regulatory and shareholder approvals, including acceptance by
the TSX Venture Exchange.

About the Company

Mukuba is a Canadian mining company focused on the exploration and
development of certain African base metal assets alone and through a
joint venture partner. These assets include a 100% interest in the
Northcore Project, which is licensed for both copper and cobalt and
encompasses approximately 2,274 square km of geologically prospective
ground in the Central African Copperbelt region of Zambia. Mukuba is
also a party to a joint venture with Benzu Resources Limited to explore
and develop a copper and base metals project in the Democratic Republic
of the Congo.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

Forward-looking Information

Securities regulators encourage companies to disclose forward-looking
information to help investors understand a company’s future prospects.
This press release contains statements about our future business and
planned activities, including matters relating to the Offering, future
shareholder meetings and the use of proceeds of the Offering. These are
“forward-looking” because we have used what we know and expect today to
make a statement about the future. Forward-looking statements usually
include words such as may, intend, plan, expect, anticipate, believe or
other similar words. We believe the expectations reflected in these
forward-looking statements are reasonable. However, actual events and
results could be substantially different because of the risks and
uncertainties associated with our business or events that happen after
the date of this press release. You should not place undue reliance on
forward-looking statements. As a general policy, we do not update
forward-looking statements except as required by securities laws and

SOURCE Mukuba Resources Limited

Source: PR Newswire