Business
Braveheart Signs Definitive Agreement to Acquire Purcell Basin Minerals Inc.
Calgary, Alberta--(Newsfile Corp. - October 18, 2018) - Braveheart Resources Inc. (TSXV: BHT) ...
About this update from Canadian Critical Minerals Inc
[{"type":"text","content":"Braveheart Signs Definitive Agreement to Acquire Purcell Basin Minerals Inc.Calgary, Alberta--(Newsfile Corp. - October 18, 2018) - Braveheart Resources Inc. (TSXV: BHT) (\"Braveheart\" or, the \"Company\") is pleased to announce that it has entered into a definitive agreement to acquire the shares of Purcell Basin Minerals Inc. (\"Purcell\") pursuant to a Plan of Arrangement (\"Plan\") and made pursuant to the Companies' Creditors Arrangement Act (\"CCAA\"). This is an arms length transaction. The Plan was finalized and signed on October 11, 2018 and remains subject to approval by the creditors of Purcell and by the Supreme Court of British Columbia (\"Court\"). Braveheart expects all necessary approvals will have been obtained by November 19, 2018. Under the terms of the Plan, Braveheart will settle all priority payables including the costs of the Court appointed Monitor under the CCAA proceedings, related legal expenses and the interim financing currently in place and being paid by the debtor in possession. The cash cost of the priority payables is not expected to exceed $1,500,000. In addition to cash, Braveheart will issue shares and warrants to CuVeras LLC (\"CuVeras\") and its unit holders. CuVeras is one of two secured creditors of Purcell. Braveheart will also issue shares to unsecured creditors of Purcell and will make an offer to existing shareholders of Purcell that, if accepted, would allow them to acquire new shares of Braveheart. Unit holders of CuVeras will be entitled to receive 10 million shares of Braveheart plus 10 million warrants with each warrant entitling the holder to purchase a further share at a price of $0.15 per share for a period of 12 months. Braveheart will purchase CuVeras' senior secured position for $6,000,000 in the form of a convertible debenture, which will mature three years from the date of issuance. The debenture will accrue annual interest of 0%, 1% and 2% respectively in the first, second and third year of the debenture. After two years, 40% of the principal amount of the debenture can be converted into shares of Braveheart at a price of $0.40 per share. After three years, the remaining 60% of the principal amount of the debenture can be converted into shares of Braveheart at a price of $0.50 per share. If the convertible debenture is fully converted into common shares of Braveheart, an...