EPM MINING VENTURES INC. ("EPK")
BULLETIN TYPE: Shares for Bonuses
BULLETIN DATE: May 5, 2014
TSX Venture Tier 1 Company
TSX Venture Exchange (the "Exchange") has accepted for filing two (2) proposed loans (the "Loans"), 1) between the Company and certain affiliates of Extract Capital LP (the "Extract Loan / Extract Lender"), and 2) between the Company and Lance D'Ambrosio, Theodore Botts and Daniel Basse (collectively, the "Director Loans / Director Lenders").
The Extract Loan
A secured US $2,500,000 loan shall be issued. However, from and after the after the two (2) year anniversary of the closing date, the principal of the Extract Loan will be due at 110% to par amount plus accrued interest.
Maturing five years from the closing date, the cash interest shall be payable monthly, in arrears, in cash and computed on a monthly basis at U.S. 12 month LIBOR plus 650 basis points per annum. The Company may instead elect to capitalize the monthly interest at a rate of LIBOR plus 850 basis points. LIBOR shall have a minimum of at least 200 basis points for the calculation of the interest rate. The interest rate on the Extract Loan shall be increased by six percent (6%) per annum on the day after the two (2) year anniversary of the closing date.
A 5% arrangement fee shall be payable to the Extract Lender at closing.
The Company will also pay the Extract Lenders a production fee of US1.70/tonne of production of sulphate of potash produced from the Lake Sevier Project. The production fee may be repurchased at any time by the Company, for various amounts of cash determined by the timing of the payment.
The Extract Loan will be guaranteed by Emerald Peak Minerals LLC, Peak Minerals Canada Limited and Peak Minerals Inc.
Additionally, the Exchange has accepted the issuance of 1,500,000 bonus common shares and 750,000 non-transferable bonus warrants to be issued to the Extract Lender in connection with the Extract Loan. Each warrant is exercisable into one common share at a price of $0.36 for a period of five years from the closing date.
The Director Loans
The Director Lenders shall issue to the Company a secured US $700,000 loan, maturing two years from the closing date. Interest shall accrue monthly, in arrears, and shall be computed on a monthly basis at U.S. LIBOR (1 month) plus 175 basis points (minimum 200 basis points).
Additionally, the Exchange has accepted the issuance of 1,050,000 non-transferable bonus warrants to be issued to the Director Lenders in connection with the Director Loans. Each warrant is exercisable into one common share at a price of $0.36 for a period of two years from the closing date.
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