"Over the past months, the Company has been undergoing a reorganization of its assets, capital structure and liabilities in order to position itself for the ongoing advancement of its primary copper project in
The Company is issuing replacement three year debentures in the amount of
The Convertible Debentures are secured by a charge of the common shares of the Company's 100% owned subsidiary,
Certain of the Convertible Debenture holders are non-arm's length parties. Such non-arm's length parties hold
Certain Convertible Debentures held by a non-arm's length party will contain additional restrictions on conversion. 179,890 Common Shares held by "Associates" (as defined in the TSXV Corporate Finance Manual) of non-arm's length parties will be included in the total number of Common Shares deemed to be held by this non-arm's length party for the purposes of determining whether such non-arm's length party is a "Control Person" upon conversion of its Convertible Debentures.
The Convertible Debentures to be issued replace the following debts of the Company:
1. Existing Convertible Debentures ("Existing Debentures") in the amount
$545,000issued on December 22, 2011. Those debentures carried an interest rate of 8%, were convertible into Common Shares at a price of $3.50and matured on December 22, 2013. Non-arm's length parties currently hold $400,000of that debt. The Convertible Debentures will be issued on a dollar for dollar basis to replace the Existing Debentures. 2. A 12-month promissory note in the amount of $100,000("First Note") issued on September 13, 2012which matured on September 13, 2013, carrying an annual interest rate of 20%. This First Note is held by an arm's length party. The Convertible Debentures will be issued on a dollar for dollar basis to replace the First Note. 3. A 12-month promissory note in the amount of $125,000("Second Note") issued on October 16, 2012which matured on October 16, 2013, carrying an annual interest rate of 20%. This Second Note is held by an arm's length party. The Convertible Debentures will be issued on a dollar for dollar basis to replace the Second Note.
In connection with these transactions, the Company will also issue 543,571 common shares in the capital of the Company at a deemed price of
NEITHER THE 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Minera Alamos Inc. Chris Frostad(416) 306-0990 www.mineraalamos.com Source: Minera Alamos Inc.