TORONTO, Aug. 14, 2015 /CNW/ - Red Tiger Mining Inc.,
(TSXV: RMN), ("Red Tiger" or the "Company") announces that it
has restructured its senior secured loan (the "Senior Loan") and
its subordinate secured loan (the "Gerald Loan") such that:
- Gerald Metals S.A. ("Gerald Metals") has acquired the Senior
Loan and will provide Red Tiger with
an additional US$1.5 million working
capital facility (the "Working Capital Facility");
- The Working Capital Facility plus the accrued interest on the
Gerald Loan of approximately US$1.7
million has been given a priority ranking (the "Priority
Tranche") over all other Red Tiger
debt facilities;
- The US$3.5 million principal
amount of the Gerald Loan has been combined with the approximately
US$9.5 million outstanding Senior
Loan balance to form a second tranche of secured debt of
approximately US$13.0 million (the
"Second Tranche");
- Both the Priority Tranche and the Second Tranche shall bear
interest at a rate of 9.9% per annum, a reduction from the previous
rates of 10.9% under the Senior Loan and 15.0% under the Gerald
Loan.
Red Tiger also announces that it
has extended the term of its copper Offtake Agreement with Gerald
Metals from an expiry of 2018 to life of mine. All other commercial
terms remain the same. Furthermore, as Red
Tiger plans to develop its gold resource, Red Tiger will enter into an exclusive, life of
mine, gold Offtake Agreement with Gerald Metals under commercially
acceptable terms.
Red Tiger further announces that
it intends to complete a CAD$1,635,000 non-brokered private placement to
Gerald Metals and to insiders of the Company consisting of
32,700,000 Red Tiger common shares
(the "Private Placement") at a price of CAD$0.05 per common share. Red Tiger intends to use the Private Placement
proceeds to fund the recommencement of mining operations.
No commission or finder's fee will be paid in connection with
the Private Placement. The shares will be offered pursuant to
exemptions from prospectus requirements of applicable securities
legislation and will be subject to a hold period of four months and
a day from their date of issuance. The Private Placement is subject
to TSX Venture Exchange approval.
Any subscriptions by insiders will be considered to be related
party transactions within the meaning of TSX Venture Exchange
("TSXV") Policy 5.9, which incorporates Multilateral Instrument
61-101 ("MI 61-101"). The Company is relying on the exemptions from
the valuation and minority shareholder approval requirements of MI
61-101 contained in sections 5.5(a) and 5.7(a) of MI 61-101 in
respect of such participation.
About Red Tiger Mining
Red Tiger is engaged in copper
cathode production, and in the exploration and development of
copper and gold projects through its wholly-owned subsidiary,
Minerales Libertad, S.A. de C.V. ("Minerales") at San Antonio de la Huerta, in the state of Sonora, Mexico.
On July 1, 2013, Minerales placed
the Luz del Cobre Copper Project, an open-pit, heap leach, copper
recovery operation into commercial production. The Company has
other prospects on its over eleven thousand-hectare concession at
various stages of exploration, and is potentially a gold producer
in the mid-term.
Red Tiger is listed on the TSX
Venture Exchange (symbol "RMN"). The number of shares outstanding
is 112,246,957.
About The Gerald Group
The Gerald Group ("Gerald") is a leading private global merchant
of physical commodities, focused primarily in non-ferrous and
precious metals. Gerald is one of the top five global non-ferrous
merchants and is the world's largest privately-held enterprise in
this sector.
Gerald was founded in 1962 and is headquartered in the U.S. with
16 offices across 5 continents and activities in 40 countries. Over
the last 53 years, Gerald has been actively engaged in the physical
merchanting, development, trade and structured financing of
commodities and commodity linked assets.
Gerald has a multibillion-dollar balance sheet and greater than
$10 billion in turnover, as well as a
global platform tailored to serve the physical commodities
industry.
Neither the 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.
Forward-Looking Information
This press release contains certain "forward-looking
information". All statements, other than statements of historical
fact, that address activities, events or developments that
Red Tiger believes, expects or
anticipates will or may occur in the future (including, without
limitation, statements relating to the debt restructuring, the
Private Placement, the recommencement of mining operations and TSX
Venture Exchange approval of the Private Placement) constitute
forward-looking information. This forward-looking information
reflects the current expectations or beliefs of Red Tiger based on information currently
available to Red Tiger as well as
certain assumptions including, without limitation, the assumption
that Red Tiger will complete the
Private Placement and be granted TSX Venture Exchange approval in
respect of the private placement, and be able to recommence mining
operations as proposed. Forward-looking information is subject to a
number of significant risks and uncertainties and other factors
that may cause the actual results of Red
Tiger to differ materially from those discussed in the
forward-looking information, and even if such actual results are
realized or substantially realized, there can be no assurance that
they will have the expected consequences to, or effects on
Red Tiger. Factors that could cause
actual results or events to differ materially from current
expectations include, but are not limited to, TSX Venture Exchange
approval for the Private Placement not being obtained, unforeseen
difficulties in connection with the process for recommencing
production at Red Tiger's mine.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, Red Tiger disclaims
any intent or obligation to update any forward-looking information,
whether as a result of new information, future events or results or
otherwise. Although Red Tiger
believes that the assumptions inherent in the forward-looking
information are reasonable, forward-looking information is not a
guarantee of future performance and accordingly undue reliance
should not be put on such information due to the inherent
uncertainty therein.
SOURCE Red Tiger Mining Inc.