SAN DIEGO--(BUSINESS WIRE)--
LUSTROS, INC. (LSTS) announced today it had received a commitment from members of its board of directors and management to fund up to $1.4 million to be used by the Company for operating expenses at its copper sulfate processing plant in Chile.
The commitment calls for the issuance of up to $1.4 million principal amount of promissory notes which shall mature in two years from the date of issuance and which will bear a 5% interest rate. These notes will be convertible into shares of Lustros common stock at the per share conversion price of $0.16, with 20% warrant coverage at a per share exercise price of $0.25 per share. These terms are substantially similar to those in the financing round closed by the Company in December 2013.
“Our copper sulfate processing plant is now in operation. This financing commitment allows us to fund the purchase of raw materials and to cover overhead and other operating expenses in preparation of our first full production orders anticipated to be shipped in May of this year. The continued financial support from our Board and management is commendable and demonstrates our commitment to our business plan,” said Bill Farley, CEO of Lustros, Inc.
About Lustros, Inc.
Lustros, Inc., through its Chilean subsidiaries, is in the business of the manufacturing of food-grade copper sulfate. Through its wholly owned subsidiary Lustros Chile SpA, Lustros has a majority equity position in Sulfatos Chile S.A., which owns the Anica Copper Mines as well as a copper sulfate production plant and employs a highly experienced staff of mining professionals. Lustros Chile SpA’s subsidiary Mineraltus SA is a Chilean corporation that will process tailings (waste products) of expired copper mines to secure the raw materials to manufacture high quality, feed-grade copper sulfate.
Safe Harbor Statement
This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on the Company's current expectations as to future events. However, the forward-looking events and circumstances discussed in this press release might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements.
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Trisha Malone, CFO