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Azarga Metals Draws Final Tranche of Baker Steel Investment
VANCOUVER, BC / ACCESSWIRE / August 12, 2019 / AZARGA METALS CORP. (" Azarga Metals...
About this update from Azarga Metals Corp.
[{"type":"text","content":"Azarga Metals Draws Final Tranche of Baker Steel InvestmentVANCOUVER, BC / ACCESSWIRE / August 12, 2019 / AZARGA METALS CORP. (\"Azarga Metals\" or the “Company”) (TSX-V:AZR) is pleased to announce that Baker Steel Resources Trust Ltd. (“BSRT”) has funded the second and final tranche of US$2 million pursuant to the Investment Transaction announced on 10 April 2019. The funds from BSRT will be used to fund the ongoing exploration program on the Unkur Copper-Silver Project in Eastern Russia. Magnetic and induced polarization geophysical surveys are already underway and will continue through September. Following this work, an approximate 6,000-meter diamond drilling program will be initiated. The combined program represents the largest physical exploration program undertaken on Unkur since Azarga Metal’s acquisition of the Unkur project in 2016. The goal of the program is to considerably expand the known mineralized envelope at Unkur. As part of Investment Transaction, on August 22, 2019, the Company will issue 1,108,333 common shares to Alexey Mikhaylovskiy (the “Finder”) as a finder’s fee for his role in the Investment Transaction. The Finder is entitled to 5% of the value of each tranche as it is drawn by the Company by the issue of common shares of the Company at a fixed conversion rate of 1.33 and a share price of C$0.12.Prior to drawdown of the second tranche of US$2 million, assuming BSRT had converted only the first tranche of US$1 million and all related interest (at the conversion price of $0.14 per common share) at maturity (December 31, 2022), had exercised all of the 13,490,414 warrants issued to it in connection with the first tranche (each warrant exercisable for 2 years, at an exercise price of C$0.17 per common share), (iii) an exchange rate of US$ = C$1.3221; and (iv) using a conversion price for the interest of C$0.07, which was the last closing price of the common shares of Company on August 9, 2019, BSRT would have beneficially owned and controlled an aggregate of 28,401,447 common shares of the Company, representing an aggregate beneficial ownership interest of approximately 23.8% of the issued and outstanding shares of the Company (post-issuance of the shares but excluding the shares issuable to the Finder).Following drawdown of the second tranche and as...