Lincoln Mining Receives $1,029,000 Loan
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 9, 2014) - Lincoln Mining Corp., (TSX VENTURE:LMG) ("Lincoln" or the "Company") announces that it has received a C$1,029,000 loan (the "Loan") to fund its working capital requirements from Golden Dreams Limited Partnership ("GDLP"), the general partner of which is controlled by Mr. Ronald K. Netolitzky, a control person of the Company (see Lincoln's news release dated March 3, 2014 for further details).
The Loan is unsecured and evidenced by a promissory note with the principal payable at the end of a two year term expiring May 7, 2016. Commencing November 7, 2014, the note bears interest at 6% per annum, calculated and payable on the first day of each month during the remainder of the term, with the first interest payment due on December 1, 2014. The Company may prepay the principal, in whole or in part, at any time without penalty.
As Mr. Netolitzky beneficially owns or controls an aggregate of 46,000,000 common shares of the Company (including 37,800,000 common shares held by GDLP), the Loan constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relied upon the exemptions from the formal valuation and minority shareholder approval requirements in relation to the Loan pursuant to sections 5.5(b) and 5.7(1)(f), respectively, of MI 61-101 on the basis that the Company is not listed on a senior stock exchange and the directors determined that the Loan is on reasonable commercial terms that are not less advantageous to the Company than if the Loan were obtained from a person dealing at arm's length with the Company and the Loan is not convertible, directly or indirectly, into equity or voting securities of the Company or otherwise participating in nature.
Lincoln Mining Corp. is a Canadian precious metals exploration and development company with several projects in various stages of exploration and development which include the Pine Grove and Bell Mountain gold properties in Nevada, the Oro Cruz gold property in California and the La Bufa gold-silver property in Mexico. In the United States, the Company operates under Lincoln Gold US Corp. and Lincoln Resource Group Corp., both Nevada corporations.
On behalf of Lincoln Mining Corporation
Paul Saxton, President & CEO
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.