DECEMBER 6, 2013, Hong Kong— Oro East Mining, Inc. (OTCBB: OROE), a global mines acquisition, exploration, and development group and pioneer in sustainable mining and refinery technologies, announces that yesterday it has entered into a Convertible Note Purchase Agreement with a foreign Hong Kong investor.
Under the terms of the Convertible Note Purchase Agreement, Oro East offered and sold a Convertible Promissory Note for aggregate proceeds of $360,000. Closing for the Note sale will take place today, December 6, 2013.
The Note bears interest at 12% annually, which interest compounds annually, and all principal and interest is due not later than June 5, 2014. All principal and interest due under the Note is convertible, at the election of the holder of the Note, into shares of common stock of the Company at a rate of $3.00 per share.
The Company offered and sold the Note in reliance on the exemption from registration afforded by Rule 903(b)(3) of Regulation S, promulgated pursuant to the Securities Act of 1933, as amended, where the Company offered and sold the Note offshore of the US, to a non-US person, there were no directed selling efforts in the US and offering restrictions were implemented.
Tian Q. Chen, who has been instrumental in closing the transaction with the Hong Kong investor, states that fundraising efforts by the company will continue throughout Hong Kong and China. “We have found a great deal of support from Asia and their financial markets continue to grow ever prosperous. It is great to see their interest in the U.S. gold market.”
After all, China is currently a key driving force in the global gold market. Gold is in high demand in China, especially as Western currencies are failing. The Chinese government has been openly encouraging gold investment, driving up prices. It is an ideal time for the United States to capture the gold market in Asia. By targeting the primary world buyer in natural resources, the Project will be allying itself with prominent international corporate conglomerates to catapult itself into the global market. The company intends to market itself via partners and alliances. Its Board comprises of corporate giants across Asia and through these Asia-based networks, the management team will infiltrate its target markets.
Disclaimer about forward-looking statements. This news release includes “forward-looking statements” as that term within the meaning of securities laws of applicable jurisdictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond the control of Oro East. These forward- looking statements include, but are not limited to, all statements other than statements of historical facts contained in this news release, including, without limitation, those regarding future expectations of Oro East. Readers can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “risk,” “should,” “will” or “would” and other similar expressions. Risks, uncertainties and other factors may cause Oro East’s actual results, performance, production or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors include the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs currently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange rates between the U.S. dollar and the Philippine peso; failure to recover the resource and reserve estimates of the Project; the failure of Oro East’s suppliers and service providers to fulfill their obligations under construction, supply and tolling agreements; unforeseen geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labor shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue reliance on forward-looking statements.