Cyprium Closes First Tranche of US$4.5-million Debt Financing

Cyprium Mining Corp. (TSXV:CUG) announced that it’s closed the first tranche of a non-brokered private placement of bonds for aggregate proceeds of US$4.5 million. The company also said it has received a disbursement of US$1 million from the subscriber of the bond financing.

As quoted in the press release:

In connection with the First Tranche Disbursement the Corporation will issue three year bonds (the ‘Bonds’) in the aggregate amount of US$1,000,000. The Bonds will bear interest at a rate of 12.5% per annum, calculated and payable quarterly in arrears commencing onSeptember 30, 2015.

It is anticipated that the second tranche (the ‘Second Tranche’) of the Bond Financing will close on or about June 1, 2015. Pursuant to closing the Second Tranche the Corporation will receive a disbursement in the amount of US$2,000,000 (the ‘Second Tranche Disbursement’) from the subscriber of the Bond Financing. Subject to closing the Second Tranche the Corporation will pay the Finder a finder’s fee of 8% of the Second Tranche Disbursement in cash and the Corporation will also issue to the Finder 1,039,423 share purchase warrants with an exercise price of $0.13 per share for a period of three years.

Andre St Michel, president and CEO of Cyprium, commented:

The closing of the first tranche of our US $4.5 million financing is a significant milestone for our company. This first disbursement is closely linked to the upcoming start of our milling operations at the 100 tons per day flotation processing plant we operate in Aldama, Mexico. With this capital, we will purchase mineralized material to be processed at the plant, invest in doubling the capacity of the plant before the end of the year and set aside sufficient working capital for our toll milling business.

Click here to read the full Cyprium Mining Corp. (TSXV:CUG) press release.