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Eco Oro Minerals Announces Pro Rata Private Placement of Up to US$20,000,000
VANCOUVER, British Columbia, Jan. 10, 2020 (GLOBE NEWSWIRE) -- Eco Oro Minerals Corp. (CSE:EOM) (the “Company” or “Eco Oro”) is pleased to announce that it has
About this update from Eco Oro Minerals Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, Jan. 10, 2020 (GLOBE NEWSWIRE) -- Eco Oro Minerals Corp. (CSE:EOM) (the “Company” or “Eco Oro”) is pleased to announce that it has entered into an investment agreement (the “Investment Agreement”) with Trexs Investments, LLC (“Trexs”), pursuant to which Trexs and other Eligible CVR Holders (as defined below) will be entitled to participate in a private placement (the “Private Placement”) for aggregate gross proceeds of up to US$20,000,000. Pursuant to the terms of the Investment Agreement, the proceeds of the Private Placement will be used to, among other things, repay all outstanding obligations owing by the Company to Trexs under its previously announced US$6,500,000 demand promissory note (the “Note”) and for general corporate purposes, including working capital needs. Overview of Private Placement Under the Private Placement, the Company will issue up to US$20,000,000 of contingent value rights certificates (“2020 CVRs”) to holders of the Company’s previously issued contingent value rights certificates (“Existing CVR Holders”) who are eligible to participate in the Private Placement on a prospectus exempt basis (“Eligible CVR Holders”). Eligible CVR Holders will be entitled to participate in the Private Placement on a pro rata basis as set out in the Investment Agreement. Holders of the 2020 CVRs will be entitled to receive an amount of money from the proceeds of the Company’s arbitration proceedings against the Republic of Colombia (the “Claim Proceeds”), with the amount they are entitled to receive (the “2020 Total CVR Amount”) to be based on the amount of time between closing of the Private Placement and payment of the Claim Proceeds. Because the 2020 Total CVR Amount will be funded by the re-direction of amounts to which Existing CVR Holders and holders of other similar rights would otherwise be entitled, the Private Placement will not have any impact on the amount of Claim Proceeds (if any) retained by the Company. Under the terms of the Investment Agreement, the Private Placement will be completed in two tranches: (i) a first tranche of up to US$17,001,276 of 2020 CVRs to be completed on or about January 13, 2020; and (ii) a second tranche of up to US$2,998,724 of 2020 CVRs to be completed on or about February 3, 2020. Board Approval As certain Eligible CVR H...