Cyprium Mining debenture holders approve extension of maturity date to February 28th, 2019
All other matters presented at debenture holders meeting also approvedMONTREAL, Sept. 22, 2016 - Cyprium Mining Corp. ("Cyprium" or the "Company") (TSXV: CUG) is pleased to announce that at a special meeting of debenture holders held on September 21st, 2016 (the "Meeting") the holders of $750,000 in principal amount of unsecured debentures bearing interest at 12% per annum (the "Debentures") overwhelmingly approved all matters presented, including the extension of the maturity date from February 28th, 2017 to February 28th, 2019. The Corporation had issued the Debentures under a debenture indenture dated February 28, 2014 (the "Indenture"). The Debentures were entitled to be voted at the Meeting on the basis of one vote for each one dollar of principal amount.
The matters approved at the Meeting are to: (i) authorize CST Trust Company, as debenture trustee, to grant an extension of time for payment of principal on the Debentures from February 28th, 2017 to February 28th, 2019, (ii) amend the Indenture to allow past due and future interest to be payable through the issuance of common shares in the capital of the Corporation (the "Common Shares"), (iii) amend the Indenture to allow for conversion of the principal amount and any accrued and unpaid interest of the Debentures into Common Shares, the option of the holder, at a price per Common Share equal to $0.10 before February 28th, 2017 and $0.15 thereafter; (iv) approve the delisting of the Debentures from the TSX Venture Exchange; and (v) waive any past defaults, and direct the debenture trustee to waive any past defaults, on the part of the Corporation in complying with any and all provisions of the Indenture.
The Corporation is also pleased to announce that it has extended the maturity of US $1,026,000 of 12.5% bonds from March 15th, 2018 to January 1st, 2019 (the "Bonds"). The Bonds were issued as part of the bond financing announced by Cyprium in March 2015. As part of the amendment of the Bonds, the Corporation was granted the option to pay all interests in common shares of the Corporation.
Alain Lambert, Chairman and CEO of Cyprium commented: "I'm glad to report that 96.8% of the principal amount of debentures voted at the meeting were in favour of all matters presented. This sends a clear message of support for the company's business plan. Our objective remains to finalize in the next two weeks further extensions of the maturity date of various loans so that at least 90% of the company's loans will mature in 2019. Achieving this objective will pave the way for greater access to the equity market as well as possible corporate transactions to ensure the development of the Potosi mine and the La Chinche exploration property."
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This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company's anticipated plans for developments of the Company and its mining projects".
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding future growth, plans for and completion of projects by Company's third party relationships, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of Company's anticipated projects, delays or changes in plans with respect to the development of Company's anticipated projects by Company's third party relationships, risks affecting the ability to develop projects, risks inherent in operating in foreign jurisdictions, the ability to attract key personnel, and the inability to raise additional capital. No assurances can be given that the efforts by the Company will be successful. Additional assumptions and risks are set out in detail in the Company's MD&A, available on SEDAR at www.sedar.com.
Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law. Investors should note that the Potosi silver mine and La Chinche property have no established mineral resources or mineral reserves as defined by NI 43-101. Although Cyprium Mining has made a production decision regarding the Potosi silver mine based on historical production records and results from recent sampling, a feasibility study of its projects has not been completed and there is no certainty that the proposed operations will be economically or technically viable.
Contact
Cyprium Mining Corporation
Alain Lambert, Chairman and C.E.O.
E-mail: alaint@cypriummining.com
Ron Keenan, C.O.O.
E-mail: rkeenan@cypriummining.com
Phone + 1 514 915 3836
Website: www.cypriummining.com