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EPM Mining Ventures Inc. (TSXV:EPK,OTCQX:EPKMF) has entered into two binding term sheets, one with Extract Capital LP for a US$2.5 million loan and another with certain Directors of the Company for a US$700,000 loan. Both loans make up a US$3.2 million financing that will be used to fund operations and project-related activities for EPM’s Sevier Lake Playa Sulphate of Potash Project in southwestern Utah.
As quoted in the press release:
Under the terms of the Extract Loan, the Company will borrow the principal sum of US$2.5 million issued at a 2% discount to par with a term of 60 months. The Extract Loan will bear interest at a variable rate equal to U.S. 12-month LIBOR plus 650 basis points (“bps”) per annum calculated on the outstanding principal on a 360-day/year basis. At the Company’s option, it may elect to capitalize monthly interest at a rate of U.S. 12-month LIBOR plus 850 bps. LIBOR shall have a minimum of 200 bps for the purposes of interest rate calculation. Additionally, the Company will issue to Extract 1,500,000 common shares, and 750,000 common share purchase warrants.
EPM Mining CEO, Lance D’Ambrosio, said:
This is a very significant financing for the Company. We have created an alternative that minimizes dilution for our shareholders and gives us the funds necessary to continue developing what we believe to be a world-class SOP asset. Most importantly, this will allow us to advance the project and accomplish milestones related to our feasibility and permitting activities.
Click here to read the EPM Mining Ventures Inc. (TSXV:EPK) press release
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