TSXV: CUG
MONTREAL, Aug. 31, 2016 /CNW Telbec/ - Cyprium Mining
Corporation ("Cyprium" or the "Company") (TSXV: CUG)
is pleased to announce that it has called a special meeting of
certain debenture holders for September
21st, 2016 (the "Meeting"). The
Corporation was authorized under a debenture indenture dated
February 28, 2014 (the
"Indenture") to issue up to $750,000 in principal amount of unsecured,
non-convertible debentures bearing interest at 12% per annum and
maturing on February 28th,
2017 (the "Debentures"). A total of $750,000 in principal amount of Debentures were
issued and outstanding as at the close of business on August 22, 2016 (the "Record Date"). The
Debentures are entitled to be voted at the Meeting on the basis of
one vote for each one dollar of
principal amount of each Debenture and the holders of Debentures of
record at the close on the Record Date, are entitled to vote such
Debentures at the Meeting.
To the knowledge of the board of directors of the Corporation,
the only matters to be placed before the Meeting are the matters
set forth in a notice of meeting and information circular to be
mailed to the Debenture holders to: (i) authorize CST Trust
Company, as debenture trustee, to grant an extension of time for
payment of principal on the Debentures from February 28th, 2017 to February 28th, 2019, (ii) amend the Indenture to
allow past due and future interest to be payable through the
issuance of common shares in the capital of the Corporation (the
"Common Shares"), (iii) amend the Indenture to allow for
conversion of the principal amount and any accrued and unpaid
interest of the Debentures into Common Shares, the option of the
holder, at a price per Common Share equal to $0.10 before February
28th, 2017 and $0.15
thereafter; (iv) approve the delisting of the Debentures from the
TSX Venture Exchange; and (v) waive any past defaults, and
direct the debenture trustee to waive any past defaults, on the
part of the Corporation in complying with any and all provisions of
the Indenture.
Alain Lambert, Chairman and CEO
of Cyprium commented: "Following our successful conversion of
$118,000 of secured debt into
non-secured convertible debt in April and the extension of
USD$813,750 in loans in June, we were
approached by several holders of the Debentures expressing an
interest in extending the maturity date and rendering the
Debentures convertible. It is on that basis that we have called a
special Debenture holder meeting for them to consider the matters
brought forth at the meeting. We are closely evaluating similar
requests from other lenders."
The Indenture provides that one or more Debenture holders
present in person or represented by proxy and owning or
representing at least 25% of the principal amount of the Debentures
then outstanding represent in person or by proxy and passed by the
favourable votes of the holders of not less than 66⅔% of the
principal amount of the outstanding Debentures present or
represented by proxy at the meeting and voted upon on a poll on
such resolution.
About Cyprium Mining Corporation
For further information, please contact:
Alain Lambert, Chairman and
C.E.O.
E-mail: alaint@cypriummining.com
Ron Keenan, C.O.O.
E-mail : rkeenan@cypriummining.com, Phone + 1 514 915 3836
Website: www.cypriummining.com
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
This news release contains "forward-looking information"
(within the meaning of applicable Canadian securities laws) and
"forward -looking statements" (within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995). Such statements
or information are identified with words such as "anticipate",
"believe", "expect", "plan", "intend", "potential", "estimate",
"propose", "project", "outlook", "foresee" or similar words
suggesting future outcomes or statements regarding an outlook. Such
statements include, among others, those concerning the Company's
anticipated plans for developments of the Company and its mining
projects".
Such forward-looking information or statements are based on a
number of risks, uncertainties and assumptions which may cause
actual results or other expectations to differ materially from
those anticipated and which may prove to be incorrect. Assumptions
have been made regarding, among other things, management's
expectations regarding future growth, plans for and completion of
projects by Company's third party relationships, availability of
capital, and the necessity to incur capital and other expenditures.
Actual results could differ materially due to a number of factors,
including, without limitation, operational risks in the completion
of Company's anticipated projects, delays or changes in plans with
respect to the development of Company's anticipated projects by
Company's third party relationships, risks affecting the ability to
develop projects, risks inherent in operating in foreign
jurisdictions, the ability to attract key personnel, and the
inability to raise additional capital. No assurances can be given
that the efforts by the Company will be successful. Additional
assumptions and risks are set out in detail in the Company's
MD&A, available on SEDAR at
www.sedar.com.
Although the Company believes that the expectations reflected
in the forward-looking information or statements are reasonable,
prospective investors in the Company's securities should not place
undue reliance on forward-looking statements because the Company
can provide no assurance that such expectations will prove to be
correct. Forward-looking information and statements contained in
this news release are as of the date of this news release and the
Company assumes no obligation to update or revise this
forward-looking information and statements except as required by
law. Investors should note that the Potosi silver mine and La Chinche property
have no established mineral resources or mineral reserves as
defined by NI 43-101. Although Cyprium Mining has made a production
decision regarding the Potosi
silver mine based on historical production records and results from
recent sampling, a feasibility study of its projects has not been
completed and there is no certainty that the proposed operations
will be economically or technically viable.
SOURCE Cyprium Mining Corporation