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Falco Resources Announces $10 Million Secured Loan With Osisko Gold Royalties and Provides Corporate Update
All dollar amounts are in Canadian dollars unless otherwise specified. MONTREAL, Sept. 11, 2018 (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, Sept. 11, 2018 (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 $10 million to Falco and is also pleased to provide a corporate update. $10 MILLION SECURED LOAN Under the terms of a secured senior loan agreement (the \"Loan Agreement\"), Osisko has provided Falco with a $10 million (the \"Principal Amount\") loan. The loan has a maturity date of December 31, 2018 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 on the earliest of the closing date of the Silver Stream Transaction (described below) or December 31, 2018. 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 5.5(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. CORPORATE UPDATE Silver Stream Transaction with Osisko On June 18, 2018, the Company announced a financing transaction with Osisko pursuant to which Osisko has agreed to commit $180 million through a silver stream (the \"Silver Stream Transaction\") toward the funding of the development of the Horne 5 Project. The Silver Stream Transaction is subject to a right of first refusal (the \"ROFR\") in favor of Glencore Canada Corporation (\"Glencore\"). Pursuant to the RO...