Business
Copper Mesa Completes New Loan Facility
VANCOUVER, Dec. 8 /CNW/ - Copper Mesa Mining Corporation ("Copper Mesa" or the "Company") (TSX:CU...
About this update from Vital Energy Inc.
[{"type":"text","content":"\n\n\n\nVANCOUVER, Dec. 8 /CNW/ - Copper Mesa Mining Corporation ("Copper Mesa"\nor the "Company") (TSX:CUX) announced that it has successfully raised\nadditional working capital through the restructuring of the terms of an\nexisting bridge loan agreement entered into on September 10, 2008.\n\n\nOf the original loan facility in the amount of US$2.3 million, the\nCompany drew down US$1.2 million and issued 1.3 million warrants. Under the\namendment, the lenders made available to the Company a US$0.5 million facility\n(the "Loan") for immediate drawn down in replacement of the US$1.1 million\nfacility which would have been available to the Company under the original\nfacility only after the fulfillment of certain conditions. Today the Company\ndrew down the full US$0.5 million Loan and, as a result, a total of US$1.7\nmillion in loans are outstanding under the bridge loan agreement.\n\n\nUnder the terms of the Loan, the Company is issuing 5 warrants for each\ndollar of the Loan drawn down by the Company. Each warrant will be exercisable\nfor a five year term from the date it is issued, and will be convertible for\none common share of the Company at an exercise price per share of $0.03, which\nis equal to the volume-weighted average closing price per share on the TSX for\nthe 5 trading days ended December 5, 2008. If the lenders exercise all 2.5\nmillion warrants being issued in connection with the Loan, and the 1.3 million\nwarrants issued on September 10, 2008, the Company would issue an aggregate of\n3.8 million shares, representing approximately 3.7% of the current shares\nissued and outstanding.\n\n\nThe amendment to the bridge loan agreement is a related party transaction\nunder Multilateral Instrument 61-101 - Protection of Minority Security Holders\nin Special Transactions ("MI 61-101") because one of the lenders has recently\nbecome a related party for purposes of that instrument. The Company is relying\nupon exemptions from certain requirements under MI 61-101 which will be\ndescribed in the material change report to be filed by the Company on SEDAR in\nconnection with the amendment to the bridge loan agreement.\n\n\nCopper Mesa Mining Corporation\n\n\nCopper Mesa is a mineral exploration and development company focused on\nadvancing into production its two key past-producing copper...