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Falco Resources Announces an Additional $10 Million Secured Loan With Osisko Gold Royalties
All dollar amounts are in Canadian dollars unless otherwise specified. MONTREAL, Feb. 22, 2019 (GLOBE NEWSWIRE) -- Falco Resources Ltd. (TSXV: FPC) ("Falco" or
About this update from Falco Resources Ltd.
[{"type":"text","content":" All dollar amounts are in Canadian dollars unless otherwise specified. MONTREAL, Feb. 22, 2019 (GLOBE NEWSWIRE) -- Falco Resources Ltd. (TSXV: FPC) (\"Falco\" or the \"Company\") is pleased to announce the execution of a secured senior loan agreement with Osisko Gold Royalties Ltd (TSX: OR) (\"Osisko\") pursuant to which Osisko has agreed to loan an additional $10 million to Falco. $10 MILLION SECURED LOAN Under the terms of a secured senior loan agreement (the \"Loan Agreement\"), Osisko has provided Falco with a $10 million loan (the “Principal Amount”) payable in two instalments of $5,000,000. The loan has a maturity date of December 31, 2019 and interest shall be payable on the Principal Amount at a rate per annum that is equal to 7%, compounded quarterly. Accrued interest shall be payable upon repayment of the Principal Amount. The Principal Amount shall be repaid at the latest on December 31, 2019. The loan will be used for the advancement of the Horne 5 Project and for general corporate purposes. The entering into the Loan Agreement is considered to be a \"related party transaction\" under Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions (\"Regulation 61-101\") but is exempted from the requirements to obtain a formal valuation pursuant to section 5.5(b) of Regulation 61-101, as the common shares of Falco (the \"Common Shares\") are not listed on any of the specified markets. The transaction is also exempted from the requirement to obtain minority approval pursuant to 5.7(1)f) of Regulation 61-101, as the loan (i) is on reasonable commercial terms that are not less advantageous to the Company than if the loan was obtained from an arm's length party, and (ii) is not convertible, directly or indirectly, into equity or voting securities of the Company. As previously announced, the Company is still targeting being in a position to complete in the first quarter of 2019, its previously announced financing transaction pursuant to which Osisko agreed to commit up to $180 million through a silver stream transaction toward the funding of the development of the Horne 5 Project. About Falco Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Québec, with extensive land holdings in the Abitibi Greenstone Belt. Falco owns rights on about 67,000 hectares of land...