Vancouver, British Columbia--(Newsfile Corp. - June 14, 2016) - One World Investments Inc. (TSXV: OWI.H) (the "Company") today announces that it has entered into a binding letter agreement (the "Agreement") with Stand Up Investments Ltd., ("Stand Up") an Arm's Length private British Columbia company. Pursuant to the terms of the Agreement, Stand Up has agreed to assign all of its rights and obligations under an Option Agreement dated December 22, 2015 with an Arm's Length third party (the "Option Agreement") to the Company. The underlying Option Agreement grants Stand Up an option (the "Option") to acquire a 100% interest in the Mogollon silver-gold project (the "Property") by paying an aggregate of US$950,000 in staged annual payments to the optionor over a three (3) year period. In consideration for the assignment of the Option by Stand Up, the Company has agreed to: (i) pay Cdn$25,000 upon entry into the Agreement, (ii) pay Cdn$75,000 and issue 5 million shares upon closing of the Agreement (the "Closing Date"), (iii) pay Cdn$200,000 and issue 5 million shares on the first anniversary of the Closing Date, (iv) issue 5 million shares on the second anniversary of the Closing Date, and (v) grant Stand Up a 1% new smelter return royalty on the Property, payable upon commencement of commercial production.
Closing of the Agreement is conditional upon satisfactory due diligence by the Company on the Property, the Company preparing a Technical Report on the Property in accordance with National Instrument 43-101, stock exchange approval and, if required, shareholder approval by shareholders of the Company.
The Property is located in Catron County, New Mexico, United States and consists of 64 unpatented and 81 patented lode mining claims that are prospective for gold and silver. Certain portions of the Property are subject to existing net smelter return royalties.
Additionally, and on or prior to the Closing Date, the Company intends to settle debt with current creditors through the issuance of shares at a deemed price of Cdn$0.05 per share. If all creditors agree to the arrangement, the Company estimates that it will settle approximately Cdn$1,559,748 in debt through the issuance of 31,194,960 shares. The proposed shares for debt transaction is subject to stock exchange approval and, if such settlement amounts to a change of control in accordance with stock exchange policies, approval of the shareholders of the Company either at a duly called meeting or by written consent.
The Agreement and shares for debt transaction are independent transactions, and as such, the closing of each are not conditional upon the closing of the other.
All shares to be issued under the Agreement and the shares for debt arrangement will bear a restrictive legend of four months and one day.
On behalf of the Board of Directors of One World Investments Inc.
Douglas Fulcher, CEO and President
"Douglas Fulcher"
For additional information contact:
Douglas Fulcher, CEO and President
Direct: 604.803.5901
Forward-Looking Information: This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company, including the closing of the Agreement and the shares for debt arrangement. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. The Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include: (i) inability to obtain stock exchange or shareholder approval, as required, (ii) unwillingness of creditors to enter into the shares for debt arrangement, (iii) inability for the Company to raise funds to satisfy its obligations under the Agreement or Option Agreement, and (iv) inability of the Company to execute its business plan. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information contained in this news release.
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.
