MONTREAL, April 2, 2020 /CNW Telbec/ - SRG Mining
Inc. (TSXV: SRG) ("SRG" or the "Company") is pleased to
provide a market update on its ongoing operations.
First and foremost, as part of the worldwide effort to fight the
spread of the COVID-19 pandemic, SRG is committed to the health and
safety of its employees and stakeholders and has taken all
necessary and recommended best practices to respond dynamically and
proactively to this threat. The Company is therefore taking
proactive measures to abide by rules and recommendations in the
jurisdictions in which it operates or has personnel. As a result,
like many other businesses, SRG has transitioned to a remote work
environment, and is adapting procedures to ensure continued
development of its operations is minimally impacted.
Furthermore, the Company is pleased to announce the appointment
of Mr. Yacouba Saré, a senior executive and nominee of Coris
Capital S.A., as an additional director to the board of directors
effective immediately.
Mr. Saré is a senior executive within the Coris Group, a leading
financial services firm in West
Africa. With over 20 years of experience in the financial
sector, Mr. Saré serves as General Director of Coris Bourse S.A.,
the management and brokerage arm of the group since 2010. Prior to
that, Mr. Saré served as General Controller of Coris Bank
International S.A. and held senior positions in Banque Agricole and
Commerciale du Burkina. Mr. Saré also serves as a lecturer at the
Université de Ouagadougou and
Université Catholique Saint Thomas D'Acquis.
The Company also announces the resignation of Mr. Vincent Hogue and Mr. K. Abdoulaye Compaore from the Board of Directors
effective immediately.
"I would like to personally thank Mr. Hogue and Mr. Compaore for
their dedication, support and services. They have both been strong
supporters of SRG in their personal and professional capacities and
we are grateful for their services and expertise. I wish them both
success in their new professional endeavor. We would also like to
welcome Mr. Saré to the Board as a Coris representative in
replacement of Mr. Compaore and look forward to working closely
with him and benefiting from his significant financial experience
in West Africa. We are delighted
to have Coris as a significant supporter of SRG and its projects."
stated Mr. Benoit La Salle,
Executive Chairman of the Board.
Private Placement Closing
The Company confirms the closing of the final tranche of a
non-brokered private placement that was originally announced on
Thursday March 5 and March 10, 2020. The Company has issued a total of
4,788,000 units of SRG at a price of $0.50 per Unit for gross proceeds of CAD$2,394,000. Each Unit is comprised of one
common share of the Company and one non‑transferable share purchase
warrant. Each whole warrant will entitle the holders to
purchase for a period of 36 months from the date of closing, one
additional common share of the Company at an exercise price of
$1.00 per Warrant Share.
The Company reports that Finders' fees of $45,430 in cash and 198,580 in finders' warrants
were payable to certain finders. No commissions are payable.
Net proceeds from the Private Placement will be used to continue
the development of the Lola graphite project and general working
capital requirements.
The Company is pleased to announce the closing of a concurrent
non-brokered private placement (the "Private Placement") for the
issuance of a total of 180,000 units of SRG at a price of
$0.50 per Unit for gross proceeds of
CAD$90,000, all on the same terms and
conditions of the Units described hereinabove.
The Private Placement is subject to certain conditions
including, but not limited to, the receipt of all necessary
approvals, including the final approval of the TSX Venture
Exchange. All securities issuable pursuant to the Private
Placement are subject to a four-month hold period from the date of
issuance in accordance with applicable Canadian securities
laws.
There were no finders' fees or commissions payable. Net proceeds
from the Private Placement will be used to continue the development
of the Lola graphite project and general working capital
requirements.
Convertible Debt Agreement Close
The Company would also like to announce that it has agreed with
Sama Resources Inc. ("Sama") to close the position it had taken
under the Convertible Debt Agreement (the "Debt Agreement")
announced on August 8, 2019. Under
said Debt Agreement, the first draw of USD$
1,000,000 was subject to a 10% interest rate and could be
repaid through a conversion of shares at a price of CAD$ 0.91 per share at the election of Sama. Sama
and SRG have agreed to proceed with repayment of said balance of
USD$ 1,000,000 through a conversion
and issuance of 1,557,110 shares to Sama. Pursuant to this issuance
Sama will now hold 24,805,377 shares of SRG. The Debt
Agreement will also be henceforth terminated.
The issuance of the shares under the Debt Agreement is subject
to certain conditions including, but not limited to, the receipt of
all necessary approvals, including the final approval of the TSX
Venture Exchange. All securities issuable are subject to a four
month hold period from the date of issuance in accordance with
applicable Canadian securities laws.
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 "firm", "anticipated",
"potential", "will", "continue", "demonstrate", "deliver",
"believe", 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 and
mine plans for the Company's mining operations; (v) the risk
associated with establishing title to mineral properties and assets
including permitting, development, operations and production from
the Company's operations being consistent with expectations and
projections; (vi) fluctuations in commodity prices, finding offtake
takers and potential clients or enforcing such agreements against
same 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.
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.
