VANCOUVER, March 15, 2018 /CNW/ - Lions Bay
Capital Inc. (TSX-V: LBI) ("Lions Bay" or "the Company") is pleased
to announce that Lions Bay has
entered into a loan agreement arranged by Riverfort Global Capital
Ltd. on behalf of Cuart Investments PCC Ltd. (the "Lender")
for a secured loan facility to be drawn in tranches up to an
aggregate loan amount of $5,000,000. The initial tranche drawdown
will be $1,000,000. The
proceeds of this loan will initially be used by the Company for its
support in restructuring Montan Mining Corp. as announced on
February 21, 2018. The
remainder of the loan facility will also be available to support
other investments that may be made by Lions Bay.
The initial tranche has a term of one year and all subsequent
tranches shall mature on a date that is 12 months after the advance
of such subsequent tranche, with the intital tranche of
$1,000,000 being repayable
within one year in installments of $250,000 plus accrued and outstanding interest
120 days from the initial advance, $150,000 plus accrued and outstanding interest
180 days from the initial advance, $250,000 plus accrued and outstanding interest
270 days from the initial advance and the remaining balance plus
any accrued and outstanding interest twelve months from the initial
advance. The loan bears interest at 12% per annum and is
subject to implementation fees of 5% on each advance and a
commitment fee of $25,000. The
loan is secured by a guarantee from the Company's wholly owned
subsidiary, Pan Andean Capital Pty Ltd. ("Pan Andean") and a pledge
by Pan Andean of certain of the investments held by Pan Andean.
Subject to approval of the TSXV, upon each advance under the
loan facility the Company will also issue warrants to the Lender
exercisable into such number of common shares of the Company equal
to 45% of the advance divided by the applicable Market Price (as
defined in the TSXV rules) relating to such advance.
In addition, Lions Bay is
pleased to announce that Mr. Gordon
Fretwell has joined the board of the Company.
Concurrently, Mr. John Newton has
resigned as a director of the Company in order to focus on his
other business activities. The Company thanks Mr. Newton for
his support in the establishment of Lions
Bay through the Qualifying Transaction completed last
year.
About Lions Bay Capital Inc.
Lions Bay Capital Inc. is a TSXV-listed Investment Issuer that
is focussed on high return investment opportunities, principally in
the mining, clean energy and clean technology sectors, where it
will provide public and private companies early-stage financial
support by way of equity or debt.
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.
Cautionary Statement Regarding Forward-Looking
Information
This press release contains "forward-looking statements" or
"forward-looking information" (collectively referred to herein as
"forward-looking statements") within the meaning of applicable
securities legislation. Such forward-looking statements
include, without limitation, forecasts, estimates, expectations and
objectives for future operations that are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the Company. Forward-looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words "will", "plan", "intends", "may",
"will", "could", "expects", "anticipates" and similar expressions.
Further disclosure of the risks and uncertainties facing
Lions Bay and other
forward-looking statements are discussed in Lions Bay's Management's Discussion and
Analysis which is available under the Company's profile on
www.sedar.com.
Forward-looking statements are based on assumptions made by
and information currently available to the Company. Although
management considers these assumptions to be reasonable based on
information currently available to it, they may prove to be
incorrect. By their very nature, forward-looking statements
involve inherent risks and uncertainties and readers are cautioned
not to place undue reliance on these statements as a number of
factors could cause actual results to differ materially from the
beliefs, plans, objectives, expectations, estimates and intentions
expressed in such forward-looking statements. These factors
include, for the Company and the companies it is invested in, but
are not limited to, commodity prices, fluctuations in revenues and
expenses, need for additional funding, availability of such
additional funding and that funding will be on acceptable terms,
retention of key employees, economic conditions, currency
fluctuations, competition and regulations, legal proceedings and
risks related to operations in foreign countries.
The forward-looking statements in this press release are made
as of the date they are given and, except as required by applicable
securities laws, the Company disclaims any intention or obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
SOURCE Lions Bay Capital Inc.
