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Vancouver, British Columbia--(Newsfile Corp. - April 4, 2025) - Waraba Gold Limited (CSE: WBGD) (FSE: ZE0) (OTC Pink: WARAF) (the "Company" or "Waraba") is pleased to announce that it has closed an initial tranche ("First Tranche") of the offering announced on March 25, 2025 (the "March 25 NR") and has issued US$200,000 of non-convertible unsecured debentures of the Company (the "Debentures") which will mature April 4, 2025. The funds raised by the Company will be utilized to fund the initial commitments under the Earn-Term Sheet In (as defined in the March 25 NR) and general working capital.
Related Party Transaction
Mr. Carl Esprey, a director and officer of the Company ("Mr. Esprey") purchased US$50,000 of Debentures as part of the offering, as such Mr. Esprey's subscription may constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Notwithstanding the foregoing, the Company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 under sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the Debentures being purchased will not exceed 25% of the Company's market capitalization. The Company did not file a material change report related to the offering more than 21 days before the expected closing of the offering as required by MI 61-101 as the Company requires the consideration received in connection with the offering immediately to fund the initial commitments under the Earn-Term Sheet In and for working capital purposes.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
About Waraba Gold Limited
The Company is a resource exploration company that is acquiring and exploring mineral properties. The Company is a reporting issuer in the provinces of British Columbia and Alberta. The Company's common shares trade on the Canadian Securities Exchange under the trading symbol "WBGD" and on the Frankfurt Stock Exchange under the trading symbol "ZE0".