Tao Minerals Announces Procurement of $500,000 Financing to Fund Further Development of El Colmillo Gold Mine
Tao Minerals, Ltd. (OTCBB: TAOL) announced today that it has executed an agreement with Galleon Investments, Ltd., providing for a $500,000 financing. This financing is in the form of a convertible debenture, with terms stipulating an interest rate of 8% and a loan repayment due 90 days from the date of the execution of the agreement, either in the form of cash or through conversion of shares of Tao Minerals stock.
The securities offered in the private placement to the investor were not registered under the Securities Act of 1933 as amended (the “Act”), and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act.
The monies from this financing will be utilized to cover operational costs at Tao’s El Colmillo Gold Mine, including those expenses derived from setbacks or delays in the mine startup process. It will also provide funds to cover unforeseen costs that may arise in the first few months of operations. Additionally, the availability of these funds will provide management some assistance with its ability to upgrade mine operations to Phase II and Phase III production levels in a timely fashion.
“We are very pleased to have concluded this financing with Galleon Investments and are appreciative of the 90 days allowed before repayment is due. While we may not require the use of the entire $500,000 that this financing provides,” stated James Sikora, CEO of Tao, “its availability will help to ensure that mine operations and upgrades at El Colmillo will proceed in a smooth and timely fashion.”
About Tao Minerals, Ltd.
Tao Minerals (OTCBB: TAOL) is a junior exploration company based in Medellin, Colombia. Tao is successfully positioning itself as a leader in gold exploration in Colombia through key acquisitions of properties with exceptional potential for low extraction cost deposits. Tao’s focus in calendar 2008 is on the upgrading and initiation of operations of its El Colmillo mine, which offers the potential to quickly provide a strong revenue stream, able to fund exploration activities on the estimated high grade gold deposit of its Golondrina property and finance additional acquisitions, while greatly enhancing shareholder value.
Notice Regarding Forward-Looking Statements
This current report contains “forward-looking statements,” as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, the repayment of the convertible debenture within the time required, the use of the funds received from the debenture financing for operational costs at the El Colmillo gold mine, the extent to which such funds will cover operational costs or upgrades, or that mine operations will commence or be upgraded.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
Contact Info: Tao Minerals Investor Relations 1-877-331-8777
SOURCE: Tao Minerals Ltd.