Business
Teako Minerals Secures $750,000 Loan from Largest Shareholder, Closes Private Placement and Engages Drill Contractor for Diamond Drilling on Yellow Moose
Vancouver, British Columbia--(Newsfile Corp. - August 25, 2023) - TEAKO MINERALS CORP. (CSE: TMIN) (the "Company" or "Teako") is pleased to announce it has clos
About this update from Teako Minerals Corp
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - August 25, 2023) - TEAKO MINERALS CORP. (CSE: TMIN) (the \"Company\" or \"Teako\") is pleased to announce it has closed its previously announced non-brokered private placement (the \"Private Placement\") for proceeds of $347,870 from the issuance of 1,585,000 flow-through shares (each a \"FT Share\") at a price of $0.11 per FT Share, and 1,927,999 non-flow-through units (each a \"NFT Unit\") at a price of $0.09 per NFT Unit. The Company has also entered into a Shareholder Loan Agreement (the \"Agreement\") for $750,000 (the \"Debt\") from the largest shareholder of the Company, Fruchtexpress Grabher GmbH & Co KG (\"FEx\"). As the Company strives towards achieving its corporate goals through a modern corporate structure, maintaining a balanced capital structure plays a vital role. Highlights: The Company secures a convertible $750,000 loan from its largest shareholder, FEx. Closing of the private placement; raising $173,520 in NFT Units and $174,350 in FT Shares. Aggregate gross proceeds raised from the loan and the placement equate to $1,097,870. Radius Drilling Corp. has been engaged as the drilling contractor for the Yellow Moose Project, with a diamond drill program anticipated to start in early September. The Shareholder Loan Agreement: The Agreement has a five (5) year term and bears interest at 4% per annum, which will be paid in shares of Teako based on the prior 20-day volume-weighted average price of Teako's common shares prior to conversion; Pursuant to the terms of the Agreement, Teako expects to pledge 50% of the Company's 4.9% interest in the shares of The Coring Company (the \"TCC Shares\") (equal to 2.45% of TCC Shares) as security for its obligations under the Agreement (see news release dated August 3, 2023). After 24 months, and each anniversary date thereafter until maturity, FEx can demand repayment of the Debt by one of the following (subject to final approval of the CSE): (1) Receiving 24.5% of the Company's 4.9% interest of TCC Shares (equal to 1.2% of TCC Shares); (2) By converting the Debt into shares of Teako based on the prior 20-day VWAP; or (3) In cash, however, this option is only available at the maturity date of the Agreement. FEx has undertaken not to convert any Debt into shares of Teako that would cause FEx to own in excess of 20% of the issue...