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Klondike Silver Seeks Shareholder Approval of Proposed Convertible Debenture
(via TheNewswire) Vancouver, Canada - TheNewswire - December 23, 2019 - Klondike Silve...
About this update from Klondike Silver Corp.
[{"type":"text","content":"Klondike Silver Seeks Shareholder Approval of Proposed Convertible Debenture(via TheNewswire)\n\n \nVancouver, Canada - TheNewswire - December 23, 2019 - Klondike Silver Corp. (the \"Company\") (TSXV:KS) is pleased to announce that it will be seeking shareholder approval of a proposed secured convertible debenture (the \"Convertible Debenture\") with Munday - Maxwell & Gaylene - Association (\"Munday Association\"), pursuant to which Munday Association, as lender, will agree to loan, in one or more advances, up to Cdn$2,500,000 to the Company. Pursuant to the requirements of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"), the Company will be seeking approval of the Convertible Debenture from disinterested shareholders at the Company's upcoming annual and special general meeting (the \"Meeting\") to be held on Tuesday, December 31, 2019 at 11:00 a.m. (Vancouver time). \n\n\n \nConvertible Debenture\n\n\n \nThe Company acknowledges itself indebted to Maxwell Munday (\"Munday\") - a control person of the Company - as of the date hereof pursuant to certain promissory notes with an aggregate principal amount of $1,457,180.74. Munday Association is an incorporated society controlled by Munday. The initial advance under the Convertible Debenture will be used firstly to repay in full the aggregate amount of outstanding principal and accrued interest owing to Munday under the promissory notes, with the remaining proceeds of the initial advance and all other subsequent advances under the Convertible Debenture to be used by the Company to advance the exploration of the Company's Sandon Zinc Silver Lead project (specifically, underground drilling) and for general working capital and administrative purposes.\n\n \n \nThe Convertible Debenture will mature on the earlier of (i) written demand made by Munday Association; and (ii) December 31, 2024. Interest accrues daily on the outstanding principal amount of each advance from the date of each advance at a rate equal to 10% per annum, compounded monthly on the last day of each month. As security for payment of the principal amount and interest thereon, and due performance of its obligations under the Convertible Debenture, the Company will agree to, amongst other things, mortgage and charge (by way of a first fixed and specif...