WAI Capital Investments Corp. Provides Corporate Update
TSX VENTURE EXCHANGE: WAI
VANCOUVER, July 30, 2015 /CNW/ - WAI Capital Investments Corp. (the "Company", formerly West African Iron Ore Corp.) (WAI: TSX-V) announces that the Company is actively pursuing a new exploration-stage project in Central America, to add to the Company's existing portfolio. Discussions are at an advanced stage, and the Company will provide further updates as soon as information is available.
Renewal of the Forécariah Permits
The Company has received approval from local authorities in Guinea to renew the Company's existing Forécariah Permits for an additional twenty-four (24) months. This renewal represents the second extension of the permits, following the expiration of the first renewal period on November 8th, 2014. The terms of the extension require that the Company relinquish fifty (50%) percent of the surface area of the permits, and therefore the total surface area covered by the renewed permits is expected to be 525 square kilometers (km2). The renewal also imposes increased exploration expenditure commitments, which the Company views as unreasonable in the circumstances. As a result, the Company's local team in Guinea has been required to seek revisions of this expectation from the Guinean Government. The Company is not in a position to provide a reliable timeframe for this revision, and will provide further updates as the situation evolves.
Notice of Default
The Company also announces that it has received a Notice of Default from China International Fund Ltd. ("CIF"), under the terms of certain convertible debentures issued to CIF. The notice suggests the Company has triggered an event of default under the convertible debentures, and the maturity of the debt has been accelerated. CIF has requested payment in full of the principal, and all accrued interest, by July 31, 2015.
The Company is of the opinion that an event of default has not occurred, and a request has been made to CIF to provide the grounds upon which a default has occurred. To date, no response has been received from CIF and, without a satisfactory explanation, the Company considers the convertible debentures to be in good standing. For further information regarding the convertible debentures, and the Company's ongoing relationship with CIF, readers are advised to review the Company's news releases of September 4, 2012 and May 1, 2014.
Update on Finances
The Company is currently evaluating all of its options to raise additional capital, including the sale of assets through the normal course of business. The Company also continues to work with CIF to reach an agreement for the advance of additional funds to the Company under the terms of the credit facility in place with CIF.
Continued uncertainty surrounding the renewal of the Company's Forécariah permits, and a lack of direction from CIF, does not allow the Company to close for the time being, the remaining third tranche of its $0.05 private placement, announced on February 26, 2015, for proceeds of $900,000. The funds for this tranche remain in escrow pending written confirmation from the government of Guinea that a renewal of the Forécariah permits has been granted based on an acceptable exploration budget, or when the Company acquires an additional resource project. Proceeds from the Private Placement will be used for general working capital and for evaluation and acquisition of additional resource projects.
About the Company
Statements in this release that are forward-looking statements are subject to various risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, the uncertainty of obtaining additional financing and exploration risk.
Readers should also refer to the specific factors disclosed under the heading "Risk Factors" in the Company's filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume any obligation to update any forward-looking statements, save and except as may be required by applicable securities laws.
WAI Capital Investments Corp., is a diversified investment and management company aiming to become the most respected and trusted development partner of natural resource and infrastructure projects.
- ON BEHALF OF THE BOARD
Neither 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 release.
SOURCE WAI Capital Investments Corp.