SRG MINING ANNOUNCES USD$1,600,000 UNDER THE SPROTT CONVERTIBLE FINANCING IN SUPPORT OF ITS NAL BID
06 Abril 2021 - 5:12PM
Montreal, Quebec April 6, 2021 - SRG Mining Inc. (TSXV: SRG)
(“
SRG” or the “
Company”) announced today that further
to its press release dated January 26, 2021 announcing a private
placement in the form of a convertible debt financing for USD$7.5M
(approximately CAD$9.53M) (the “
Financing”) with Sprott
Private Resource Lending II (Collector), LP (“
Sprott”), and
the announcement of March 26, 2021 announcing the closing of the
first tranche of the Financing for USD$800,000 which matured on
April 2, 2021 (the “
First Tranche”), the Company would like
to provide a general update to the market.
Considering the Company’s current working capital needs, market
conditions and SRG’s bid on the assets of North American Lithium
Inc. (“NAL”), Sprott has agreed to refinance the First
Tranche and replace it with a new secured credit agreement for
USD$1.6M (the “USD$1.6M Note”) which was funded on the date
hereof and represents a fresh cash injection of USD$800,000, as the
balance will be used to refinance and replace the previously
announced convertible financing under the First Tranche.
The USD$1.6M Note, includes a refinancing and a replacement of
the previously announced USD$800,000 First Tranche, as well as a
fresh cash injection on the same terms which are for the totality
of the amount; (i) an interest rate of 8% per annum, (ii) a term
expiring on July 31, 2023, (iii) is convertible into common shares
of the Company, at the discretion of Sprott, at a conversion price
equal to C$0.69 per share and (iv) includes the issuance of
warrants as described herein.
Concurrently, the Company has issued transferable common share
purchase warrants to Sprott exercisable for up to 2,913,623 common
shares of the Company at C$0.69 per share until July 31, 2023. The
above noted securities are subject to a four-month hold
period.
As for the Financing announced on January 26, 2021, the parties
continue to finalize the terms and conditions of the Financing,
including the conversion price. The Financing and the USD1.6M Note
(as it concerns the refinancing of the First Tranche and the new
cash injection) remain subject to applicable rules and approvals of
the TSX Venture Exchange (the “TSXV”).
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.
Contact :
Benoit La Salle, FCPA FCA
Email: benoit.lasalle@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.
Kathleen Jones-Bartels
SRG Mining
16043417474
Kathleen.bartels@srgmining.com
SRG Mining (TSXV:SRG)
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