TSX Venture Exchange: FEO
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VANCOUVER, BC, Sept. 11,
2024 /CNW/ - Oceanic Iron Ore Corp. – September 11, 2024 (TSXV: FEO) ("Oceanic",
or the "Company") is pleased to announce a non-brokered
financing in an aggregate amount of up to $2,385,000 (the "Financing").
The subscribers to the Financing will be issued convertible
debentures (the "Debentures") which will earn interest at a
rate of 8.5% per annum over a 60 month term (the "Term"),
payable quarterly in cash or Common Shares, at the election of the
Company, at the market price of the Common Shares at the time of
settlement.
The principal amount of the Debentures will be convertible to
units (each a "Unit") during the Term at the election of the
subscriber. The conversion price during the first year of the term
is $0.075 per Unit, increasing to
$0.10 per Unit for the remainder of
the term. Each Unit will consist of 1 common share of the
Company and 1 common share purchase warrant of the Company, with
each whole warrant entitling the holder to purchase one common
share of the Company ("Common Shares") at a price of
$0.075 per common share for a period
of 5 years after closing of the Financing.
The Debentures will be secured with a first ranking charge at
any time against the assets of the Company, ranking
pari-passu with the Existing Debenture holders (as defined
below).
The Company intends to use the proceeds of the Financing for
ongoing negotiations with potential strategic partners, general
claims maintenance, and corporate and working capital
purposes.
In connection with the Financing, the Company also intends to
make certain amendments to the Company's previously issued Series
A, B, C and D secured debentures (together, the "Existing
Debentures") to reference the issuance of the Debentures (the
"Amendments"). All other terms of the amended Existing
Debentures, including the conversion price and the conversion
period, will remain the same as the Existing Debentures.
The completion of the Financing and the Amendments will be
subject to the approval of the TSX Venture Exchange.
OCEANIC IRON ORE CORP. (www.oceanicironore.com)
On behalf of the Board of Directors
"Steven Dean"
Chairman
+1 (604) 566-9080
This news release includes certain "Forward-Looking
Statements" as that term is used in applicable securities law. All
statements included herein, other than statements of historical
fact, including, without limitation, statements regarding the
Financing, the Amendments, the size of the Financing, the use of
proceeds from the Financing, and future plans and objectives of the
Company, are forward-looking statements that involve various risks
and uncertainties. In certain cases, forward-looking statements can
be identified by the use of words such as "plans", "intends",
"expects" or "does not expect", "scheduled", "believes", or
variations of such words and phrases or statements that certain
actions, events or results "potentially", "may", "could", "would",
"might" or "will" be taken, occur or be achieved. There can be no
assurance that such statements will prove to be accurate, and
actual results could differ materially from those expressed or
implied by such statements. Forward-looking statements are based on
certain assumptions that management believes are reasonable at the
time they are made. In making the forward-looking statements in
this presentation, the Company has applied several material
assumptions, including, but not limited to, the assumption that:
(1) the Company will be able to complete the Financing and the
Amendments on the terms set out in this news release; (2) there
being no significant disruptions affecting operations, whether due
to labour/supply disruptions, damage to equipment or otherwise; (3)
permitting, development, expansion and power supply proceeding on a
basis consistent with the Company's current expectations; (4)
certain price assumptions for iron ore; (5) prices for availability
of natural gas, fuel oil, electricity, parts and equipment and
other key supplies remaining consistent with current levels; (6)
the accuracy of current mineral resource estimates on the Company's
property; and (7) labour and material costs increasing on a basis
consistent with the Company's current expectations. Important
factors that could cause actual results to differ materially from
the Company's expectations are disclosed under the heading "Risks
and Uncertainties " in the Company's most recently filed MD&A
(a copy of which is publicly available on SEDAR
at www.sedar.com under the Company's profile) and
elsewhere in documents filed from time to time, including the
MD&A, with the TSX Venture Exchange and other regulatory
authorities. Such factors include, among others, risks related to
the ability of the Company to complete the Financing on the terms
set out in this news release; the ability of the Company to obtain
adequate insurance; the economy generally; fluctuations in the
currency markets; fluctuations in the spot and forward price of
iron ore or certain other commodities (e.g., diesel fuel and
electricity); changes in interest rates; disruption to the credit
markets and delays in obtaining financing; the possibility of cost
overruns or unanticipated expenses; employee relations.
Accordingly, readers are advised not to place undue reliance on
Forward-Looking Statements. Except as required under applicable
securities legislation, the Company undertakes no obligation to
publicly update or revise Forward-Looking Statements, whether as a
result of new information, future events or
otherwise.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Oceanic Iron Ore Corp.
