VANCOUVER, Nov. 27, 2019 /CNW/ - Boreal Metals Corp.
("Boreal" or the "Company") (TSXV:BMX) is pleased to
announce that it has entered into a loan facility agreement (the
"Loan Agreement") with EMX Royalty Corporation (the
"Lender") for a secured loan facility of C$800,000 (the "Loan").
The Loan will have a term of 12 months and will have an
effective annual interest rate of 8.08%. Boreal may at any
time prepay the Loan plus accrued interest without penalty. The
Lender is an insider of the Company by virtue of holding 9,525,735
common shares of the Company, or 12.53% of the Company's issued and
outstanding common shares. Proceeds of the Loan will be used on the
exploration projects and for working capital purposes.
As consideration for the Loan, the Company will pay to the
Lender a loan facility bonus fee (the "Loan Facility Bonus
Fee") equal to 5% of the Loan, to be payable in cash on
closing of the Loan. The Lender may, at its option, elect to
receive payment of the Loan Facility Bonus Fee in common shares of
Boreal ("Bonus Shares"), in which event such Bonus
Shares will be issuable at not less than the market price of the
common shares of Boreal, with such market price to be determined in
accordance with applicable TSX Venture Exchange ("TSXV")
policy. The Company may choose to postpone payment of the Loan
Facility Bonus Fee to a later date, at which point it will be added
to the principal of the Loan. The Loan, including the payment of
the Loan Facility Bonus Fee and any issuance of Bonus Shares, is
subject to the approval of the TSXV, and any Bonus Shares issued
will also be subject to a statutory four month hold
period.
The Company will also grant the following security to the Lender
in connection with the Loan:
- a pledge of the issued and outstanding shares of Iekelvare
Minerals AB ("Iekelvare"), a wholly-owned subsidiary of the
Company; and
- the obligation to transfer the Gumsberg License (or the issued
and outstanding shares of Iekelvare) to the Lender if the Loan is
in default.
About Boreal Metals Corp.
Boreal is a mineral exploration company focused on the discovery
of silver, zinc, copper, and gold deposits in exceptional,
historical mining project areas spanning Sweden and Norway. The Company aims to discover new
economic mineral deposits in known mining districts that have seen
little or no modern exploration. The Company is led by an
experienced management team and technical team, with successful
track records in mineral discovery, mining development and
financing.
On behalf of Boreal Metals Corp.
Patricio Varas, Chief Executive
Officer
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain statements that may be deemed
"forward‐looking statements". Forward‐looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and
similar expressions, or that events or conditions "will", "would",
"may", "could" or "should" occur. Although Boreal Metals Corp.
believes the expectations expressed in such forward‐looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance, are subject to risks and
uncertainties, and actual results or realities may differ
materially from those in the forward‐looking statements. Such
material risks and uncertainties include, but are not limited to,
Boreal Metals Corp.'s ability to raise sufficient capital to
maintain its mineral tenures and concessions in good standing, to
explore and develop its projects, to repay its debt and for general
working capital purposes; changes in economic conditions or
financial markets; the ability of Boreal Metals Corp. to obtain the
necessary permits and consents required to explore, drill and
develop the projects and if obtained, to obtain such permits and
consents in a timely fashion relative to Boreal Metals Corp.'s
plans and business objectives for the projects; the general ability
of Boreal Metals Corp. to drill test its projects and find mineral
resources; if any mineral resources are discovered or acquired, the
Company's ability to monetize any such mineral resources; and
changes in environmental and other laws or regulations that could
have an impact on the Company's operations. Forward‐looking
statements are based on the reasonable beliefs, estimates and
opinions of Boreal Metals Corp.'s management on the date the
statements are made. Except as required by law, Boreal Metals Corp.
undertakes no obligation to update these forward‐looking statements
in the event that management's beliefs, estimates or opinions, or
other factors, should change.
SOURCE Boreal Metals