TSX-V: CUG
All other matters presented at debenture holders meeting also
approved
MONTREAL, Sept. 22, 2016 /CNW/ - Cyprium Mining Corporation
("Cyprium" or the "Company") (TSXV: CUG) is pleased
to announce that at a special meeting of debenture holders held on
September 21st, 2016 (the
"Meeting") the holders of $750,000 in principal amount of unsecured
debentures bearing interest at 12% per annum (the
"Debentures") overwhelmingly approved all matters presented,
including the extension of the maturity date from February 28th, 2017 to February 28th, 2019. The Corporation
had issued the Debentures under a debenture indenture dated
February 28, 2014 (the
"Indenture"). The Debentures were entitled to be voted at
the Meeting on the basis of one vote for each one dollar of principal amount.
The matters approved at the Meeting are 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.
The Corporation is also pleased to announce that it has extended
the maturity of US $1,026,000 of
12.5% bonds from March
15th, 2018 to January
1st, 2019 (the "Bonds"). The Bonds were
issued as part of the bond financing announced by Cyprium in
March 2015. As part of the amendment
of the Bonds, the Corporation was granted the option to pay all
interests in common shares of the Corporation.
Alain Lambert, Chairman and CEO
of Cyprium commented: "I'm glad to report that 96.8% of the
principal amount of debentures voted at the meeting were in favour
of all matters presented. This sends a clear message of support for
the company's business plan. Our objective remains to finalize in
the next two weeks further extensions of the maturity date of
various loans so that at least 90% of the company's loans will
mature in 2019. Achieving this objective will pave the way for
greater access to the equity market as well as possible corporate
transactions to ensure the development of the Potosi mine and the La Chinche exploration
property."
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