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Falco Resources Closes $7 Million Financing with Osisko Gold Royalties
All dollar amounts are in Canadian dollars unless otherwise specified. Not for Dissemination in the United States or through US Newswire Services MONTREAL, July
About this update from Falco Resources Ltd.
[{"type":"text","content":" All dollar amounts are in Canadian dollars unless otherwise specified. Not for Dissemination in the United States or through US Newswire Services MONTREAL, July 03, 2018 (GLOBE NEWSWIRE) -- Falco Resources Ltd. (TSX-V:FPC) (“Falco” or the “Company”) is pleased to announce that it has closed its previously announced $7 million financing transaction (the “Debenture Financing”) with Osisko Gold Royalties Ltd (TSX:OR) (NYSE:OR) (“Osisko”). Under the terms of the Debenture Financing, Osisko purchased a secured debenture (the “Debenture”) having a principal amount of $7,000,000 (the “Principal”). The Company shall use the net proceeds received under the Debenture for the development, construction and working capital requirements of the Horne 5 Property. Upon receipt of disinterested shareholder approval, the Debenture is convertible (the “Conversion”) into units of Falco (the “Units”). There will be no interest payable at any time on the outstanding Principal of the Debenture unless Falco fails to obtain disinterested shareholder approval for the Conversion, in which case interest shall accrue retroactively from the closing date of the Debenture Financing at a rate per annum that is equal to 7%, compounded quarterly. Accrued interest shall be payable upon repayment of the Principal when due, as per the terms of the Debenture. The maturity date of the Debenture shall be the earlier of (i) the date of the meeting of the Falco shareholders to be held to obtain the disinterested shareholder approval and (ii) December 31st, 2018, subject to extension in accordance with the terms of the Debenture. On the date upon which Falco obtains the disinterested shareholder approval for the Conversion, the Debenture shall be converted into 12,104,444 Units of Falco. Each Unit shall consist of one common share of Falco (“Common Shares”) and one-half of one common share purchase warrant. Each whole warrant shall entitle the holder to purchase one Common Share, subject to customary anti-dilution clauses, at a price of $0.75 for a period of thirty-six (36) months from the date the Units are issued. The Units, if issued following receipt of the disinterested shareholder approval, will be subject to a hold period of four months from the date of Conversion in accordance with applicable Canadian securities laws. The Debenture Financing i...