Business
Altiplano Announces Proposed Debt Financing with Bonus Warrants
Edmonton, Alberta--(Newsfile Corp. - January 8, 2020) - Altiplano Metals Inc. (TSXV: APN) (WKN...
About this update from Altiplano Metals Inc.
[{"type":"text","content":"Altiplano Announces Proposed Debt Financing with Bonus WarrantsEdmonton, Alberta--(Newsfile Corp. - January 8, 2020) - Altiplano Metals Inc. (TSXV: APN) (WKN: A2JNFG) (\"Altiplano\" or the \"Company\") plans to arrange loan financing (the \"Loans\") from certain insiders and other private investors of the Company to raise up to a maximum of $3 million (the \"Debt Financing\"). Under the terms of the Debt Financing, the Loans will be advanced in escrow until a minimum total of $1.25 million has been raised pursuant to this Debt Financing, or any other financings of the Company, and the date such condition is met is the \"Escrow Release Date\". The Loans will mature three (3) years from the Escrow Release Date (the \"Maturity Date\"). The Loans will bear interest at 8.0% per annum and will be repayable by the Company in twenty-four (24) equal instalments of principal and interest, commencing one year after the Escrow Release Date, and thereafter on the first business day of each month until the Maturity Date. The Company expects to repay the Loans by the Maturity Date from cash flow generated from the Company's operations in Chile. In the event that the Escrow Release date has not occurred by May 31, 2020, then all funds for the Loans held in escrow will be returned to the lenders without interest or deduction.As compensation to the lenders for the risk of repayment of the Loans, Altiplano will issue non-transferable common share purchase warrants (the \"Bonus Warrants\") exercisable to purchase common shares of the Company equal to 100% of the principal amount of the Loans divided by $0.10 per share, or up to 12,500,000 common shares if the Debt Financing is fully subscribed (the \"Warrant Shares\"). The Bonus Warrants will be exercisable at an exercise price of $0.10 per Warrant Share, for a maximum period of up to the Maturity Date subject to the following acceleration provisions: The number of Warrant Shares exercisable under the Warrants will be reduced by one twenty-fourth (1/24th) of the original total number of Warrant Shares exercisable, on the first anniversary of the Escrow Release Date, and on the first business day of each month thereafter, until reduced to zero by the Maturity Date, and unless such Bonus Warrants are exercised by the Lender before the date of such reduction. In addition, the expiry date of the Bonus ...