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Alhambra Resources Ltd. |
CALGARY, ALBERTA - Alhambra Resources Ltd. (TSX-V:ALH) ("Alhambra" or the "Corporation") announces that it intends to borrow up to C$1,000,000 by way of subordinated secured promissory notes (the "Notes").
The Notes will bear interest at an annual rate of 20%, mature one year after the date of advance and will be secured against the assets of the Corporation, subordinated to existing secured debentures in the principal amount of $1,000,000. The Notes may be repaid at any time prior to maturity without penalty. In connection with the Notes, Alhambra will issue non-transferable warrants to purchase up to 8,000,000 common shares of the Corporation. Half of the warrants issued will have an exercise price of C$0.10 per common share and the other half will have an exercise price of C$0.20 per common share. All warrants shall be exercisable for 6 months from the date of issue of the Notes. The purpose of this loan is to provide general working capital for the Corporation. At this time, the Corporation has commitments for a total of C$450,000.
Completion of this financing is subject to satisfaction of usual requirements, including completion of documentation and regulatory body approval, including approval of the TSX Venture Exchange Inc.
About AlhambraAlhambra common shares trade on the TSX Venture Exchange under the symbol ALH and in Germany on the Frankfurt Open Market under the symbol A4Y. The Corporation's website can be accessed at www.alhambraresources.com.
| Ihor P. Wasylkiw VP & Chief Information Officer +1 (403) 508-4953 |
Donald D. McKechnie Vice President Finance and CFO +1 (403) 228-2855 (Toll Free) |
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Forward-Looking Statements |
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Alhambra Resources Ltd.
Head Office 330, 700 - 6th Avenue S.W. Calgary, Alberta, Canada T2P 0T8 Phone: (403) 228-2855 Fax: (403) 228-2865 E-mail: info@alhambraresources.com |
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