GNCC CAPITAL, INC. - INITIAL UPDATE ON PLANNED ACQUISITIONS OF LITHIUM INTERESTS

Rhea-AI Summary

GNCC Capital, Inc. (GNCP.PK) announced an update on its acquisition proposal to enter the Lithium Exploration Sector. The company plans to acquire two lithium claim groups for a total of $3,300,000 in cash. An additional $700,000 is needed for working capital and exploration. Financing discussions are underway with a corporate partner to secure $4,000,000 in funding. The company aims to enhance its market position but has faced increased acquisition costs due to additional claims from the seller. Due diligence is ongoing, and further updates will follow.

Positive

• Acquisition of lithium claims provides potential for revenue growth in the lithium sector.
• Increased claim offerings from the seller suggest strategic value and market expansion.
• Funding discussions with Fundco may secure necessary capital for acquisitions and operations.

Negative

• Increased acquisition costs due to additional claims could strain financial resources.
• Delays in finalizing acquisitions and funding may hinder operational plans.

LAS VEGAS, Jan. 11, 2022 /PRNewswire/ -- GNCC Capital, Inc. (GNCP.PK) ("The Company" or "GNCP") is now in a position to provide further and more detailed information on its acquisition proposal to enter the Lithium Exploration Sector.

Shareholders will no doubt understand that we will not divulge the Seller, State in which the Claims are located nor geographical co-ordinates. To do so would be highly prejudicial whilst we are working on consummating these transactions. It would then permit competitors to identify these Claims which would result in a bidding war.

As our shareholders are fully aware we were forced to halt all work on these acquisitions, financing, etc. until we were restored to that of PINK CURRENT. That only occurred on December 30, 2021. The Financing requirements we are utilizing required our Company to be PINK CURRENT in terms of the SEC Rules and Regulations.

Shareholders should be aware that the cost of these acquisitions have materially increased due to the Seller offering significantly and materially more Claim Blocks to ourselves; and only on late Thursday last week.

In this initial information being disclosed to our Shareholders, we have attempted to keep it as brief and concise as possible. Far more detailed reports will be released as material agreements are consummated.

COSTS OF ACQUISITION THE GROUP OF VARIOUS LITHIUM CLAIMS:-

CLAIM GROUP 1: $1,650,000

CLAIM GROUP 2: $1,650,000

This is payable in cash.

Your Directors wish to acquire both Claim Groups and not just a single Claim Group.

NOTE: If we accepted the "staggered payment option" of both Claim Groups offered by the Seller, we would only be entitled to possession of the Claim Titles in three years plus would we would be liable for an additional $900,000 in "Work Exploration Expenditure" over each of the two Claim Groups and over that three year period. This would increase our costs an additional $1.8 million.

It is not an option which we would consider.

The costs exclude payments to the United States Bureau of Land Management (BLM); where applicable.

SIZE AND SCOPE OF THE GROUP OF LITHIUM CLAIM GROUPS:

Group 1: 24 Lode Claims totaling 460 acres.

Group 2: 24 Lode Claims and 27 Placer Claims totaling 1,020 acres.

SUMMARY:-

The Company wishes to acquire both Claim Groups 1 and 2 for an amount of $3,300,000 in cash. Furthermore we require an additional initial $700,000 in cash for working capital and the commencement of further exploration work.

Your Directors have been forced to extend due diligence due to increased amount of Claim blocks being offered by the Seller. Our planning is that our Executive Chairman, Ron Lowenthal assisted by USA Corporate Counsel will be responsible for the negotiations with Fundco and that our President, Ted Blom will be overseeing the requisite due diligence and then travelling to the USA in order to spend the necessary period of time with Seller and other experts in order to inspect the Properties, familiarize himself with the properties and the area, to examine and discuss all existing geological data and to formulate, amend and to verify all going forward exploration plans as were drawn up by the Seller.

FUND RAISING:-

The Company is in discussions with a Corporate Finance/Fund Management Company ("Fundco") to raise the amount of a net $4,000,000 in cash.

The proposal at this point is that Fundco advances the initial $4,000,000 in cash and continues to advance all funds pertaining to professional fees including but not limited all legal and accounting work. Their Corporate Finance Department is responsible for all Filings and Regulatory Requirements as is required by the SEC and other Regulatory Agencies. Fundco recoups their funds upon the approval of the SEC of Regulation A Offering and in order to recover all of the funds advanced and to obtain their profits in respect of the transaction. Upon SEC approval, the Company would then be furthermore be contractually obligated to issue Common Stock to Fundco in full settlement upon whatever terms both parties agree upon.

Needless to say, this is a fairly protracted process and Fundco has not only advised us of the potential timeframes but accepts these; it is as a part of their day to day business. It is unlikely that Fundco would be issued any shares in settlement for a protracted period of time. This has no affect upon your Company receiving the cash funding without delay and obviously subject to our agreeing upon all of Fundco's terms and conditions.

INITIAL CORPORATE ACTIONS:

The Company has already commenced upon a series of Corporate Actions in order to facilitate and to avoid any delays in this process; as requested by Fundco. We have already commenced by raising our Authorized Share Capital and our next step is to obtain a "lock up" and an extension of conversion time on all outstanding Preferred Stockholders for a period of two years in order to contractually ensure any conversions whatsoever into our Common Stock and for that period.

OPTION TO JOINT VENTURE:-

The Seller has also submitted a Joint Venture Proposal over Claim Groups 1 and 2 should we wish to consider such an option or if we are unable raise the required amount of $4 million in cash. At this point, your Directors are not considering this Option but it remains an Option should we deem it necessary. The Seller has extended this option solely due to the combined decades of experience of your Directors in Mining Exploration and their knowledge of Lithium Exploration, Extraction and Processing.

GENERAL INFORMATION PERTAINING TO ALL OF THE LITHIUM CLAIMS:-

The Seller is the beneficial and registered or recorded owner of an undivided 100% interest in the Properties, free and clear of any and all royalties, liens, defects, charges or encumbrances of any nature or kind whatsoever created; whether written or oral, direct or indirect;

(a)      all of the unpatented mining claims included in the Properties have been located in accordance with the mining laws of the State and in accordance with local customs, rules and regulations; and

(b)      the properties are in good standing, free and clear of all encumbrances; and

(c)      all of the unpatented mining claims included in the Properties have been validly and properly located, staked, tagged and recorded in accordance with the laws of the jurisdiction in which the Properties are located and there are no disputes, threatened or now existing of which the Seller is aware, as to title to or staking or recording of such unpatented claims; and

(d)     It has the full and undisputed power, right and authority to deal with the Properties as provided for in this Agreement;

OTHER INFORMATION:-

We ask that our Shareholders respect our need to complete thorough final due diligence on the enlarged Claim Blocks and to allow us time to secure the most advantageous terms with Fundco.

Your Directors will update shareholders further once the final agreements in respect of the financing/fund raising agreements have been agreed upon and signed.

We will also be issuing further details on our proposed planning in respect of the Company's existing Gold & Silver Exploration interests and on a separate Press Release. Given the somewhat heated debate on this issue, we are very likely to call for an Extraordinary Shareholder Meeting in order for our shareholders to cast their vote in order to decide upon whether to retain and add value to these assets; or on the the other hand to sell them and to pay an Extraordinary Dividend to our Shareholders.

Forward Looking Statements:-

This press release may contain forward-looking statements. The words "believe," "expect," "should," "intend," "estimate," "projects," variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company's current expectations and are subject to a number of risks, uncertainties and assumptions.

The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company's filings, which are on file with the OTC Markets Group.

Contact Information:
GNCC CAPITAL, INC.
Telephone: (702) 990-0156
Investor Relations Contact:
E Mail: investor@gncc-capital.com  
Twitter: https://twitter.com/gncccapital 

 

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SOURCE GNCC Capital, Inc.

FAQ

What is GNCP's acquisition proposal in the lithium sector?

GNCP plans to acquire two lithium claim groups for a total of $3,300,000 in cash.

How much funding is GNCP seeking for its acquisitions?

GNCP is seeking $4,000,000 in cash through discussions with Fundco.

What are the locations and sizes of the lithium claims GNCP intends to acquire?

Group 1 includes 24 lode claims totaling 460 acres, and Group 2 includes 24 lode claims and 27 placer claims totaling 1,020 acres.

What challenges does GNCP face regarding its acquisition plan?

GNCP faces increased acquisition costs and potential delays in securing financing and completing due diligence.