Resource Streaming Business Launch by Key Capital Corporation

Key Capital has positioned itself as a streaming business that will provision resource project funding through streaming agreements that provide for a life of mine share in gold, silver, base metals or energy product production.
 
March 14, 2012 - PRLog -- TEMPE, ARIZONA - Key Capital Corporation (KCPC.PK) is pleased to advise of its new business focus and corporate update as follows:

Business Development: In the resource industry, larger mine streaming opportunities are well provided for by the major streaming companies established over the past approximate eight years as well as through other resource funding sources. There is, however, a significant void where the funding options of emerging and relatively smaller mining companies are concerned.

Having identified this void, Key Capital seeks to work with these emerging and smaller mining companies through the acquisition of mine production product rights at agreed and discounted pricing in return for the Company negotiating and arranging provision of the required funding needed by these smaller entities to commence or expand production.

What is Streaming: Streaming agreements, also referred to as volumetric production payments (VPPs) or metal purchase agreements, were pioneered in their current form by Silver Wheaton in 2004. Streaming agreements are financing arrangements whereby companies are offered capital, often prior to mine infrastructure being built, in exchange for an interest in future mine production.

The metal stream agreements are an accretive financing tool that can enable resource owners to minimize dilution and accelerate production or sales. Key Capital seeks interests in this production or sales through proposed streaming agreements.

Royalty agreements generally only cover proven ‘reserves’. In the broader, less certain ‘resources’ category, a typical Key Capital metal stream financing will seek to provide for a junior to achieve production through the metal stream financing, despite the unknown value down the road of any additional reserves beyond those technically established as feasibly minable at the time of deal.

Since the streaming agreements are based on projected resource output and predetermined pricing, the upside for Key Capital is potentially large if the actual metal production were to exceed the projected output or the market price were to rise. Streaming enables both Key Capital and mine operators to leverage capital to achieve their respective goals and potentially deliver strong ROIs.

Offices and Operational: The Company is establishing its operational headquarters in Tempe, Arizona and will also work through appointed representatives in a number of other countries.

Corporate Website: Within the next approximate 7-10 days, the Company expects to publicly launch its corporate website to support the formal commencement of its streaming business operations with an initial focus on developing new relationships and pursuing discussions with a number of its first potential streaming clients based in the UK and Canada.

Compliance: The Company is currently a non-SEC reporting company and further has not filed any Information and Disclosure Statement, Financial Statements, or News Releases through the OTC Disclosure and News Service Platform. Currently, the Company is in process of appointing Accountants and Attorneys who will help the Company to properly and expediently prepare the Company’s information documents and accounts for release through the OTC Disclosure and News Service Platform in the very near future.

For information purposes, the Company advises that following the completion of a number of corporate actions the issued and outstanding Shares in the Company will be approximately 29.88 million Common Shares and the Public Float will be approximately 3.5 million Shares.

IMPORTANT NOTICE FOR SHAREHOLDERS AND INVESTORS

Currently the Company is Non-SEC Reporting and has not prepared or released any current Information and Disclosure Report or Financial Statements. The Company has only just commenced operations of its streaming business and no funding agreements have been concluded to date. As the Company’s shares are traded on the Pink Sheets, all parties, including Shareholders and investors, need to be fully aware that until such time as the Company files its Information and Disclosure Report and financial statements on the OTC Disclosure and News Service Platform there is very limited current public information available on the Company, its business and its affairs, and therefore, there is an inherent risk in any investment in the Company.

Forward Looking Statements, Safe Harbor and Risk Descriptions are incorporated by reference from the Key Capital Corporation web site http://www.keycapitalgroup.com/legal.html.

For further information contact:

Chris Nichols
President                  
Key Capital Corporation
+1 (480) 745-2565
chris.nichols@keycapitalgroup.com

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Key Capital has positioned itself as a streaming business that will provision resource project funding through streaming agreements that provide for a life of mine share in gold, silver, base metals or energy product production.
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Tags:Mining, Mines, Gold, Silver, Precious Metals, Base Metals, Copper, Iron Ore, Energy
Industry:Mining, Energy
Location:Tempe - Arizona - United States
Subject:Companies
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