TSX-V: GMN
TORONTO, Oct. 6, 2016 /CNW/ - (TSXV: GMN) GobiMin Inc.
(the "Company" or "GobiMin") announces that it agrees
to extend the repayment term from October 6,
2016 to April 6, 2017 with
respect to a USD4,000,000 revolving,
term loan facility bearing an interest rate of 3.5% per annum (the
"Loan") in favor of China Precision Material Limited
("CPML"), a non-arm's length party, under the loan agreement
dated April 7, 2016. All the
other terms of the loan agreement remain unchanged. GobiMin may
demand repayment of principal and interest anytime with a 3 days'
notice.
The outstanding principal amount of the Loan is currently
USD3,500,000.
GobiMin owns a 10.06% indirect equity interest in CPML which
engages in the trading of metals, predominately silver, in
Hong Kong.
The Loan is considered a "related party transaction" under
Multilateral Instrument 61-101 Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). The
Company is relying on Sections 5.5(a) and 5.7(1)(a) of MI 61-101,
respectively, for exemptions from the formal valuation and minority
approval requirements under MI 61-101, as the amount of the Loan to
CPML does not exceed 25% of the Corporation's market
capitalization.
Extension of the Loan is subject to receipt of all applicable
regulatory and exchange approvals.
"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."
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SOURCE GobiMin Inc.
