Business
Baker Steel to Amend and Increase Its Investment in Azarga Metals
VANCOUVER, BC / ACCESSWIRE / March 16, 2020 / AZARGA METALS CORP. (" Azarga Metals " or the ...
About this update from Azarga Metals Corp.
[{"type":"text","content":"Baker Steel to Amend and Increase Its Investment in Azarga MetalsVANCOUVER, BC / ACCESSWIRE / March 16, 2020 / AZARGA METALS CORP. (\"Azarga Metals\" or the \"Company\") (TSXV:AZR) is pleased to announce that it has executed a Binding Term Sheet with Baker Steel Resources Trust Ltd. (\"BSRT\"), setting out the terms on which BSRT will, subject to satisfaction of certain conditions, increase its investment in the Company by an additional US$500,000 (\"Third Advance\") under the Secured Convertible Loan Facility Agreement (the \"Loan Facility\") announced on April 10, 2019 and amend certain terms of the Loan Facility.Subject to formal documentation of amendments to the Loan Facility and related documentation (the \"Amendments\" and, as amended the \"Amended Loan Facility\") and the approval of the TSX Venture Exchange, the Company and BSRT agree that, upon closing of the Amendments (the \"Closing\"), each of the following will occur:The principal amount of the Loan Facility will be increased from US$3,000,000 to US$3,500,000 and BSRT will advance the Third Advance of US$500,000.The conversion price at which the principal amount under the Amended Loan Facility may be converted into common shares of the Company will be reduced from C$0.14 to C$0.10.The Company will, upon receipt of the Third Advance of US$500,000, issue such number of non-transferable share purchase warrants (the \"New Warrants\") to BSRT as is equal to US$500,000 (converted into Canadian dollars at the Bank of Canada closing exchange rate on the day prior to Closing divided by C$0.10). Each New Warrant will be exercisable to buy one common share of the Company at an exercise price of C$0.10 until December 31, 2022.The exercise price and expiry date of the existing 13,490,414 warrants issued to BSRT on April 12, 2019 (\"Warrants\") will be amended from C$0.17 and April 21, 2021 to C$0.10 and December 31, 2022, respectively (after such amendments, the \"Amended Warrants\").The funds from BSRT's additional investment will be used to fund the ongoing exploration program at the Unkur Project. The goal of the program is to considerably expand the known mineralized envelope at Unkur.On Closing, Alexey Mikhaylovskiy (the \"Finder\") will be entitled to receive 277,083 common shares of the Company, being 5% of US$500,000 converted to Canadian dollars at a fixed exchange rat...