SRG ENTERS INTO US$5,000,000 CREDIT FACILITY WITH SAMA
RESOURCES
MONTREAL, Aug. 8, 2019 /CNW Telbec/ - SRG Mining
Inc. (TSXV: SRG) ("SRG" or the "Company") is pleased to
announce that a US based industrial firm with significant
experience in West Africa (the
"US-based Partner") has entered into a Share Purchase Agreement to
acquire 8,300,000 of the 24,658,267 common shares held by Sama
Resources Inc. ("Sama") in the share capital of SRG, for an
aggregate purchase price of US$5,000,000 (the "Sale"). The Sale shall occur
in five equal, monthly tranches and is expected to fully close by
December 15, 2019.
Concurrently with the aforementioned Sale, and as part of its
ongoing efforts to advance its flagship graphite project located in
Lola, Guinea (the "Project") the
Company has entered into a Memorandum of Understanding (the "MoU")
with the US-based Partner.
Under the terms of the MoU, the parties will jointly investigate
cooperation possibilities in various areas such as debt financing
(project financing), energy production at site, mining services,
graphite concentrate transportation from site-to-port and graphite
product placement in the United
States. No consideration is payable under the MoU. The
parties will agree on the terms on which any such collaboration
will be implemented (including financial terms) if and when they
identify a suitable opportunity.
"Our efforts to capitalize on synergies will be further
investigated over the coming months as we continue to develop and
optimize the Lola graphite project" said Executive Chairman, Mr.
Benoit La Salle. "We are excited
about the possibilities this new partnership could provide the
Project and SRG."
Credit Facility
Concurrently with the Sale, SRG has also entered into a
Convertible Debt Agreement ("Debt Agreement") with Sama whereby
Sama makes available to SRG a credit facility of up to US$5,000,000, bearing a 10% per annum interest
rate which will be repayable in 12 months in cash or shares with a
conversion price of $0.91 per SRG
share at the election of Sama, as well as a bridge loan of
C$1,000,000, bearing a 10% per annum
interest rate and repayable in 12 months.
"We are very pleased to complete this two-fold bridge financing
with Sama, which will allow us to concentrate our efforts on
developing and financing the Lola Project," said Ugo Landry-Tolszczuk, President and Chief
Operating Officer of the Company.
In relation to the Debt Agreement, SRG is relying on the
exemptions set forth in sections 5.5(b) and 5.7(1)(a) of
Regulation 61-101 respecting Protection of Minority Security
Holders in Special Transactions.
The Debt Agreement remains subject to the approval of the TSX
Venture Exchange.
About SRG Mining
SRG Mining is a Canadian-based mining company focused on
developing the Lola graphite deposit located in the Republic of
Guinea, West Africa. SRG is committed to operating in
a socially, environmentally and ethically responsible manner. For
additional information, please visit SRG's website at
www.srgmining.com.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
Forward-Looking Statements
This press release contains "forward-looking information" within
the meaning of Canadian securities legislation. All information
contained herein that is not clearly historical in nature may
constitute forward-looking information. Generally, such
forward-looking information can be identified by the use of
forward-looking terminology such as "will", "continue",
"demonstrate", "potential", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would" or "might". Forward-looking information is subject to known
and unknown risks, uncertainties, and other factors that may cause
the actual results, level of activity, performance, or achievements
of the Company to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to: (i) volatile stock price; (ii) the general global
markets and economic conditions; (iii) the possibility of
write-downs and impairments; (iv) the risk associated with
exploration, development, and operations of mineral deposits; (v)
the risk associated with establishing title to mineral properties
and assets; (vi) fluctuations in commodity prices and other risks
and factors described or referred to in the section entitled "Risk
Factors" in the MD&A of the Company and which is available at
www.sedar.com, all of which should be reviewed in conjunction
with the information found in this news release.
Forward-looking information is based on assumptions management
believes to be reasonable at the time such statements are made,
including but not limited to, continued exploration activities and
no material adverse change in mineral prices. Although the Company
has attempted to identify important factors that could cause actual
results to differ materially from those contained in the
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated, or intended. There can
be no assurance that such forward-looking information will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such forward-looking
information. Such forward-looking information has been provided for
the purpose of assisting investors in understanding the Company's
business, operations and exploration plans and may not be
appropriate for other purposes. Accordingly, readers should not
place undue reliance on forward-looking information.
Forward-looking information is given as of the date of this press
release, and the Company does not undertake to update such
forward-looking information except in accordance with applicable
securities laws.
SOURCE SRG Mining Inc.
