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Discovery Harbour Announces Letter of Intent for US$250,000 Convertible Loan Facility
VANCOUVER, BC / ACCESSWIRE / June 10, 2015 / Discovery Harbour Resources Corp. (TSXV: DHR) (...
About this update from Discovery Harbour Resources Corp.
[{"type":"text","content":"Discovery Harbour Announces Letter of Intent for US$250,000 Convertible Loan FacilityVANCOUVER, BC / ACCESSWIRE / June 10, 2015 / Discovery Harbour Resources Corp. (TSXV: DHR) (\"Discovery\" or the \"Company\") announces entry into a letter of intent (the \"LOI\") setting out the basis terms and conditions on which Richard Gilliam (the \"Lender\") has agreed to make a loan facility for up to US$250,000 (the \"Facility\") available to Discovery on an unsecured basis for Discovery to draw down, from time to time, at its option and without interest, until July 31, 2015. The funds drawn down by Discovery during the term of the Facility (collectively, the \"Advances\") are expected to be used to fund exploration activities and Discovery's 2Bar Project in Nevada. The Facility will terminate on July 31, 2015 and any funds that have not been drawn down under the Facility by Discovery will no longer be available to Discovery. All Advances will be repaid to the Lender on August 14, 2015 (the \"Settlement Date\"), or such other date as may be agreed to by Discovery and the Lender, by the issuance of common shares of Discovery (each, a \"Share\") to the Lender. The number of Shares to be issued to the Lender on the Settlement Date will be calculated by converting the total Advances from U.S. dollars into Canadian dollars based on the Bank of Canada closing exchange rate on August 12, 2015 and then dividing the total amount of Advances as expressed in Canadian dollars by the price per Share which will be equal to the greater of C$0.10 per Share and the Market Price (as defined in the policies of the TSX Venture Exchange (the \"Exchange\") of the Shares on the Settlement Date. The advance of funds under the Facility and the conversion of the Advances into Shares on the Settlement Date remain subject to entry into a definitive loan facility agreement (the \"Definitive Agreement\") and approval of the Exchange. The Shares, if any, issued on conversion of the Advances are expected to be subject to a hold period expiring four months and one day after the date of issuance. The Lender is a Director and significant shareholder of the Company. Richard Gilliam currently owns, directly and indirectly, approximately 49.6% of the issued and outstanding Shares on an undiluted basis. Assuming that the entire amount of the Facility is drawn down by Discover...