Business
Lupaka Gold Announces Closing of Bridge Loan Financing
Vancouver, British Columbia--(Newsfile Corp. - June 30, 2017) - Lupaka Gold Corp (TSXV: LPK)...
About this update from Lupaka Gold Corp.
[{"type":"text","content":"Lupaka Gold Announces Closing of Bridge Loan FinancingVancouver, British Columbia--(Newsfile Corp. - June 30, 2017) - Lupaka Gold Corp (TSXV: LPK) (FSE: LQP) (\"Lupaka Gold\" or the \"Company\") is pleased to announce that on June 30, 2017 it has closed the Bridge Loan Financing (the \"Loan\") previously announced on June 22, 2017, with a group of third-party individuals and Gordon Ellis (CEO) and Stephen Silbernagel (Director), who are Company Insiders (collectively, the \"Lenders\"), pursuant to which the Company has agreed to borrow a total of C$600,000 (the \"Loan\"). The proceeds will be used for the payment of concession fees, advancement of the Company's mineral properties and for general working capital purposes. The Loan is unsecured and will bear simple interest at the rate of twelve percent (12%) per annum. The Loan and accrued and unpaid interest shall be repaid in full on or before three months after the Borrower receives any additional and/or new financing of at least $4.0 million or the date that is six months after the closing date, whichever is the earlier. The Company has agreed to issue to the Lenders a total of 4,000,000 non-transferrable warrants, such number being equal to the amount of the Loan divided by $0.15. Each warrant will entitle the holder to purchase one common share of the Company at a price of C$0.15 per share for a period of one year following the closing date. The warrants and any shares issued pursuant to the exercise of the warrants will be subject to a statutory hold period under Canadian securities laws expiring four months and a day after the closing date. Gordon Ellis is a director and officer; Stephen Silbernagel is a director of the Company and their participation in the Loan is considered to be a \"related party transaction\" as defined under Multilateral Instrument 61-101 (\"MI 61-101\"). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves such persons, will exceed 25% of the Company's market capitalization.Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for t...