Business
ScoZinc and Fancamp Terminate Business Combination and Fancamp to Become Cornerstone Investor in ScoZinc
Halifax, Nova Scotia--(Newsfile Corp. - September 16, 2021) - ScoZinc Mining Ltd. ( TSXV: SZM ...
About this update from Edm Resources Inc
[{"type":"text","content":"ScoZinc and Fancamp Terminate Business Combination and Fancamp to Become Cornerstone Investor in ScoZincHalifax, Nova Scotia--(Newsfile Corp. - September 16, 2021) - ScoZinc Mining Ltd. (TSXV: SZM) (\"ScoZinc\" or the \"Company\") announces that the February 12, 2021 Arrangement Agreement between ScoZinc and Fancamp Exploration Ltd. (\"Fancamp\") has been terminated, and the parties have entered into a new agreement (the \"Agreement\") in which Fancamp will invest in ScoZinc by way of subscription to a $1,300,000 non-brokered private placement as well as convert the Fancamp Loan and Termination Fee to equity in ScoZinc.The President and CEO, Mr. Mark Haywood, commented: \"We are very pleased to announce that Fancamp will invest in ScoZinc primarily via a $1.3M private placement and a Board nominee. Combined with the Fancamp loan conversion, Fancamp will become a cornerstone investor in ScoZinc, which we expect will assist enormously in our plans to finance the Scotia Mine towards commercial production.ScoZinc will provide a corporate update shortly, including the latest developments at our Scotia Mine.\"In connection with the termination of the Arrangement Agreement, a termination fee of $300,000 (\"Termination Fee\") is to be paid by Fancamp to ScoZinc today. In connection with the Agreement, Fancamp will subscribe to 1,969,697 common shares of ScoZinc at $0.66 per share by way of a non-brokered Private Placement for a total purchase price of $1,300,000 (\"Private Placement\"), and the Fancamp Termination Fee of $300,000 will be credited towards Fancamp's subscription. Regarding Fancamp's secured loan to ScoZinc aggregating a principal amount of $250,000 (the \"Loan\"), ScoZinc will issue Fancamp 378,788 fully paid and non-assessable common shares of ScoZinc at a deemed issue price of $0.66 per share in full and final satisfaction of the Loan and any other amounts that may be owing by ScoZinc to Fancamp in respect of the Loan (the \"Debt Settlement\"). Concurrent with closing the Private Placement and Debt Settlement, ScoZinc shall appoint one nominee of Fancamp to its Board of Directors, providing Fancamp's shareholding is over 10 percent of the then issued and outstanding shares of ScoZinc on an ongoing basis.The Private Placement and Debt Settlement are subject to final TSX Venture Exchange approval.About ScoZinc Mining Ltd....