Business
Talon Metals Enters into Loan Extension with Resource Capital Funds
Road Town, British Virgin Islands--(Newsfile Corp. - June 26, 2018) - Talon Metals Corp. (TSX:...
About this update from Talon Metals Corp.
[{"type":"text","content":"Talon Metals Enters into Loan Extension with Resource Capital FundsRoad Town, British Virgin Islands--(Newsfile Corp. - June 26, 2018) - Talon Metals Corp. (TSX: TLO) (\"Talon\" or the \"Company\") announced today that it has entered into an agreement (the \"Loan Extension\") with Resource Capital Fund VI L.P (\"RCF\") to extend the maturity date of the current $16 million convertible loan facility (the \"Convertible Loan\") with the Company to April 2, 2019. All other terms and conditions of the Convertible Loan will remain in full force and effect. In addition to agreeing to extend the maturity date of the Convertible Loan, RCF has also agreed to extend the maturity date of the $1 million unsecured promissory note to April 2, 2019.The Loan Extension will provide the Company with time to, among other things, consider all of its options in respect of the Convertible Loan.RCF is a \"related party\" of the Company pursuant to Multilateral Instrument 61-101 (\"MI 61-101\") as RCF, assuming the exercise of the conversion rights under the Convertible Loan, has beneficial ownership of, and control or direction over, directly or indirectly securities of the Company carrying more than 10% of the voting rights attached to all of the Company's outstanding voting securities. The Loan Extension may constitute a \"related party transaction\" under MI 61-101 because such transaction is a material amendment of the terms of an outstanding debt or liability owed to a related party.The Company is seeking \"minority approval\" (as defined in MI 61-101) of the Loan Extension pursuant to section 5.6 of MI 61-101. In determining minority approval for a related party transaction, the Company is required to exclude the votes attached to common shares that, to the knowledge of the Company or any \"interested party\" or their respective directors and senior officers, after reasonable inquiry, are beneficially owned or over which control or direction is exercised by \"interested parties\" and their \"related parties\" and \"joint actors\" (all as defined in MI 61-101). At the shareholders meeting, the common shares held by (i) RCF and (ii) any of its respective related parties, associates or affiliates, and any joint actors of the foregoing will be excluded for the purposes of determining minority approval of the Loan Extension. In accordance with section...