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Scorpio Gold - Convertible Loans in Principal Amount of up to US$2,450,000
VANCOUVER, BC / ACCESSWIRE / May 30, 2022 / Scorpio Gold Corporation (" Scorpio Gold " or th...
About this update from Scorpio Gold Corporation
[{"type":"text","content":"Scorpio Gold - Convertible Loans in Principal Amount of up to US$2,450,000VANCOUVER, BC / ACCESSWIRE / May 30, 2022 / Scorpio Gold Corporation (\"Scorpio Gold\" or the \"Company\") (TSX-V:SGN) announces that it has entered into two convertible loan agreements dated May 24, 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 under two loans to be advanced by the Lenders (the \"Loans\"), subject to the completion of certain conditions precedent described in the Convertible Loan Agreements including the approval of the TSX Venture Exchange (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 LoansSubject to the terms and conditions in the Convertible Loan Agreements, the Lenders will advance the Loans to the Company in draws from the closing date (the \"Closing Date\") until the maturity date of December 31, 2022 (the \"Maturity Date), in such amounts as agreed to between the Lenders and the Company, provided that the principal amount of each Loan advanced does not exceed in aggregate US$1,225,000. The outstanding principal amount of each Loan will be 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.The outstanding principal amount of each drawdown under the Loans will bear interest at a rate of 123/8% per annum, compounding monthly, not in advance, for the period commencing from the date the applicable Lender advances the draw to the Company until the outstanding principal amount and accrued interest has been repaid or converted into Common Shares, as applicable. Interest shall be due and payable by the Company in cash upon the earlier of: (i) the Maturity Date, and (ii) the date the entire outstanding principal amount of the applicable Loan has been repaid or converted into Common Shares.For each drawdown under the Loans, the Company w...