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Crystal Peak Minerals (TSXV: CPM) has announced that EMR Capital Resource Fund 1, LP (EMR) has exercised its full contingent of 34,516,129 warrants at a price of $0.4243 per common share for gross proceeds of $14.65 million, pursuant to its subscription agreement with CPM. CPM is also concluding negotiations with EMR for an additional non-brokered, …
Crystal Peak Minerals (TSXV: CPM) has announced that EMR Capital Resource Fund 1, LP (EMR) has exercised its full contingent of 34,516,129 warrants at a price of $0.4243 per common share for gross proceeds of $14.65 million, pursuant to its subscription agreement with CPM.
CPM is also concluding negotiations with EMR for an additional non-brokered, private-placement investment of 12,620,331 common shares at a price of $0.4243 per common share for gross proceeds of $5.35 million.
As quoted in the press release:
Assuming the Offering is completed, EMR will increase its holdings in the Company from approximately 37.6 million shares to approximately 84.8 million shares, representing a change from approximately 25.2% to approximately 43.2% of Crystal Peak’s issued and outstanding Common Shares. As a result of this increased shareholding, and in accordance with the terms of the relationship agreement between the Company and EMR (dated May 29, 2015 and available on SEDAR at www.SEDAR.com), EMR will be entitled to appoint an additional nominee Director to be approved by shareholders at the Annual General Meeting to be held on June 21, 2016.
The Company intends to use the funds received from EMR’s exercise of its warrants and any funds received from the Offering to fund the continuing development program on its premium specialty fertilizer project on the Sevier Playa in southwestern Utah, U.S.A. (the “Sevier Playa Project“) including advanced work identified in its Preliminary Feasibility Study, efforts to complete its feasibility study; an Environmental Impact Statement and other permitting; the repayment of debt, including the loans with Extract Capital and certain directors of the Company which will be repaid immediately with the proceeds from the warrant exercise; and for general working capital purposes.
Crystal Peaks’ CEO Lance D’Ambrosio said:
“This is a true vote of confidence in our project and we are extremely pleased that EMR continues to support our efforts. With EMR’s track record of developing resource properties, we look forward to working with them as we move our project past the feasibility study and into the construction-ready stage. Also, I’d like to add that Extract Capital has been a great partner to work with these past two years and we thank them for their support.