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SRG Mining Announces USD$1,600,000 Under The Sprott Convertible Financing in Support of its NAL Bid
Montreal Quebec, April 06, 2021 (GLOBE NEWSWIRE) -- Montreal, Quebec April 6, 2021 - SRG Mining Inc. (TSXV: SRG) (“SRG” or the “Company”) announced today that f
About this update from Falcon Energy Materials Plc
[{"type":"text","content":" Montreal Quebec, April 06, 2021 (GLOBE NEWSWIRE) -- Montreal, Quebec April 6, 2021 - SRG Mining Inc. (TSXV: SRG) (“SRG” or the “Company”) announced today that further to its press release dated January 26, 2021 announcing a private placement in the form of a convertible debt financing for USD$7.5M (approximately CAD$9.53M) (the “Financing”) with Sprott Private Resource Lending II (Collector), LP (“Sprott”), and the announcement of March 26, 2021 announcing the closing of the first tranche of the Financing for USD$800,000 which matured on April 2, 2021 (the “First Tranche”), the Company would like to provide a general update to the market. Considering the Company’s current working capital needs, market conditions and SRG’s bid on the assets of North American Lithium Inc. (“NAL”), Sprott has agreed to refinance the First Tranche and replace it with a new secured credit agreement for USD$1.6M (the “USD$1.6M Note”) which was funded on the date hereof and represents a fresh cash injection of USD$800,000, as the balance will be used to refinance and replace the previously announced convertible financing under the First Tranche. The USD$1.6M Note, includes a refinancing and a replacement of the previously announced USD$800,000 First Tranche, as well as a fresh cash injection on the same terms which are for the totality of the amount; (i) an interest rate of 8% per annum, (ii) a term expiring on July 31, 2023, (iii) is convertible into common shares of the Company, at the discretion of Sprott, at a conversion price equal to C$0.69 per share and (iv) includes the issuance of warrants as described herein. Concurrently, the Company has issued transferable common share purchase warrants to Sprott exercisable for up to 2,913,623 common shares of the Company at C$0.69 per share until July 31, 2023. The above noted securities are subject to a four-month hold period. As for the Financing announced on January 26, 2021, the parties continue to finalize the terms and conditions of the Financing, including the conversion price. The Financing and the USD1.6M Note (as it concerns the refinancing of the First Tranche and the new cash injection) remain subject to applicable rules and approvals of the TSX Venture Exchange (the “TSXV”). About SRG Mining SRG Mining is a Canadian-based mining company focused on developing the Lola graphite deposit locate...