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Scorpio Gold – Closing of Convertible Loans in Principal Amount of up to US$2,450,000
VANCOUVER, British Columbia, Aug. 18, 2022 (GLOBE NEWSWIRE) -- Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX-V: SGN) announces that further to
About this update from Scorpio Gold Corporation
[{"type":"text","content":" VANCOUVER, British Columbia, Aug. 18, 2022 (GLOBE NEWSWIRE) -- Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX-V: SGN) announces that further to its press release dated May 30, 2022 it has closed the two convertible loan agreements dated May 24, 2022, as amended on August 4, 2022 (the “Convertible Loan Agreements”), with Ianco Holdings Ltd. and Matco Holdings Ltd. (collectively, the “Lenders”) pursuant to which the Company may borrow the aggregate principal amount of up to US$2,450,000 from the Lenders (the “Loans”). To date, the Lenders have advanced an aggregate of US$2,350,000 to the Company, which amount has been incorporated into the Loans. The Loans are subject to the final approval of the TSX Venture Exchange (the “Exchange”). The remaining $100,000 that may be borrowed by the Company under the Loans is subject to further approval of the Exchange. The Company intends to use the proceeds of the Loans to advance its Goldwedge property and for general working capital purposes. Terms of the Convertible Loans Pursuant to the terms of the Convertible Loan Agreements, the Lenders agreed to advance the Loans to the Company in draws until the maturity date of December 31, 2022 (the “Maturity Date”), provided that the principal amount of each Loan advanced does not exceed in aggregate US$1,225,000. The outstanding principal amount of the Loans bear interest at a rate of 123/8% per annum, compounding monthly. For each drawdown under the Loans, the Company will pay to the applicable Lender a facility fee of US$3,250. The outstanding principal amount of each Loan less the facility fees payable are convertible, at the election of the applicable Lender, into common shares in the capital of the Company (each, a “Common Share”) at a conversion price of US$0.06 per Common Share, subject to adjustment, from the Closing Date until the earlier of: (i) the Maturity Date, and (ii) the date the entire outstanding principal amount of the applicable Loan has been repaid. A total of 38,733,333 Common Shares are issuable on conversion of the outstanding principal amount of Loans, subject to adjustment. Accrued interest on the Loans is not convertible into Common Shares. The Lenders have agreed that they will not convert the outstanding principal amount of the Loans into Common Shares if the conversion of such principal amount will r...