/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, April 26, 2019 /CNW/ - Filo Mining Corp.
(TSX-V, Nasdaq First North: FIL) ("Filo Mining", or the
"Company") is pleased to announce that it has entered into a new
US$4,000,000 credit facility (the
"New Facility"), which will be evidenced by a debenture (the
"New Debenture"), to provide additional financial
flexibility to fund the Company's ongoing work programs and provide
general working capital. The New Facility has a term of 12
months ending April 26, 2020 (the
"Maturity Date"). No interest is payable during the term of
the New Debenture, however, any amount of the New Facility
remaining unpaid and outstanding on or after the Maturity Date
shall bear interest at a rate of 5.00% per annum until repaid in
full.
Please view PDF version of news release.
The New Facility has been issued by Zebra Holdings and
Investments S.à.r.l. (the "Lender"), a company controlled by
a trust settled by the late Adolf H.
Lundin, and an insider of the Company. The terms of the New
Facility include the Company issuing to the Lender, subject to
approval of the TSX Venture Exchange, an aggregate of 6,000 common
shares of Filo (the "Common Shares") and an additional 300
Common Shares per month for each US$50,000 of the New Facility outstanding from
time to time up to the Maturity Date. All securities issued in
conjunction with the New Facility will be subject to a four-month
hold period under applicable securities law.
The New Facility supplements existing credit facilities provided
by the Lender, totalling US$10,000,000, which are evidenced by a
US$5,000,000 debenture dated as of
January 12, 2019, which matures on
July 12, 2020, and a second
US$5,000,000 debenture dated as of
February 28, 2019, which matures on
February 28, 2020.
The Common Shares to be issued pursuant to the terms of the New
Debenture will be issued at a deemed price of CA$2.85 per
share.
The issuance of Common Shares to an insider and the entering
into of the Debenture each constitute a "related party
transaction", as defined under Multilateral Instrument 61-101
("MI 61-101"). The transactions will be exempt from the
formal valuation and minority shareholder approval requirements of
MI 61-101 as neither the fair market value of any shares issued to,
or the consideration paid for, the New Debenture will exceed 25% of
the Company's market capitalization.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy the securities described herein in
the U.S., or in any jurisdiction in which such an offer or sale
would be unlawful. The securities described herein have not been
and will not be registered under the U.S. Securities Act of 1933,
as amended, or any U.S. state securities laws and may not be
offered or sold in the U.S. or to the account or benefit of a U.S.
person or a person in the U.S. absent registration or an applicable
exemption from the registration requirements.
About Filo Mining
Filo Mining is a Canadian exploration and development company
focused on advancing its 100% owned Filo del Sol copper-gold-silver
deposit located in Chile's Region
III and adjacent San Juan Province, Argentina.
The Company's shares are listed on the TSX-V and on Nasdaq First
North under the symbol "FIL". Filo Mining is a member of the Lundin
Group of Companies.
Additional Information
The Company's certified advisor on Nasdaq First North Stockholm
is Pareto Securities AB, +46 8 402 50
00, certifiedadviser.se@paretosec.com.
This information is information that Filo Mining Corp. is
obliged to make public pursuant to the EU Market Abuse
Regulation. The information was submitted for publication,
through the agency of the contact person set out below, on
April 26, 2019 at 3:30 p.m. Pacific Time.
On behalf of the board
Adam Lundin,
President and CEO
Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein in the
news release constitutes "forward-looking information" and
"forward-looking statements" within the meaning of applicable
securities legislation (collectively, "forward-looking
information"). The forward-looking information contained in this
news release is based on information available to the Company as of
the date of this news release. Except as required under applicable
securities legislation, the Company does not intend, and does not
assume any obligation, to update this forward-looking information.
Generally, this forward-looking information can frequently, but not
always, be identified by use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events, conditions
or results "will", "may", "could", "would", "might" or "will be
taken", "occur" or "be achieved" or the negative connotations
thereof. All statements other than statements of historical fact
may be forward-looking statements.
Forward-looking statements contained in this news release
include statements regarding the anticipated use of proceeds from
the New Facility, the ability of the Company to satisfy the
conditions of the New Debenture including repayment of the New
Facility upon its maturity and the issuance of shares thereunder,
and the timing and success in obtaining requisite regulatory
approvals. Although Filo Mining believes that the
expectations reflected in such forward-looking statements and/or
information are reasonable, undue reliance should not be placed on
forward-looking statements since Filo Mining can give no assurance
that such expectations will prove to be correct. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements, including the
risks, uncertainties and other factors identified in Filo's
periodic filings with Canadian securities regulators, including the
Company's Annual Information Form available under the Company's
profile at www.sedar.com.
The forward-looking statements contained in this news release
are made as at the date of this news release and Filo does not
undertake any obligations to publicly update and/or revise any of
the included forward-looking statements, whether as a result of
additional information, future events and/or otherwise, except as
may be required by applicable securities laws.
Forward-looking information is provided for the purpose of
providing information about management's current expectations and
plans and allowing investors and others to get a better
understanding of the Company's operating environment.
Forward-looking information is based on certain assumptions that
the Company believes are reasonable, including that the current
price of and demand for commodities will be sustained or will
improve, the supply of commodities will remain stable, that the
general business and economic conditions will not change in a
material adverse manner, that financing will be available if and
when needed on reasonable terms and that the Company will not
experience any material labour dispute, accident, or failure of
plant or equipment. These factors are not, and should not be
construed as being, exhaustive. Although the Company has attempted
to identify important factors that would cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated, or intended. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. All of the forward-looking
information contained in this document is qualified by these
cautionary statements. Readers are cautioned not to place undue
reliance on forward-looking information due to the inherent
uncertainty thereof.
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 news release.
SOURCE Filo Mining Corp.