Cyprium Mining Calls Special Debenture Holders Meeting for September 21st, 2016

MONTREAL, Aug. 31, 2016 /CNW Telbec/ – Cyprium Mining (TSXV:CUG) is pleased to announce that it has called a special meeting of certain debenture holders for September 21^st, 2016 (the “Meeting“). The Corporation was authorized under a debenture indenture dated February 28, 2014 (the “Indenture“) to issue up to $750,000 in principal amount of unsecured, non-convertible debentures bearing interest at 12% per annum and maturing onFebruary 28^th, 2017 (the “Debentures“). A total of $750,000 in principal amount of Debentures were issued and outstanding as at the close of business on August 22, 2016 (the “Record Date“). The Debentures are entitled to be voted at the Meeting on the basis of one vote for each one dollar of principal amount of each Debenture and the holders of Debentures of record at the close on the Record Date, are entitled to vote such Debentures at the Meeting.

To the knowledge of the board of directors of the Corporation, the only matters to be placed before the Meeting are the matters set forth in a notice of meeting and information circular to be mailed to the Debenture holders to: (i) authorize CST Trust Company, as debenture trustee, to grant an extension of time for payment of principal on the Debentures from February 28th, 2017 toFebruary 28th, 2019, (ii) amend the Indenture to allow past due and future interest to be payable through the issuance of common shares in the capital of the Corporation (the “Common Shares“), (iii) amend the Indenture to allow for conversion of the principal amount and any accrued and unpaid interest of the Debentures into Common Shares, the option of the holder, at a price per Common Share equal to $0.10 before February 28th, 2017 and $0.15 thereafter; (iv) approve the delisting of the Debentures from the TSX Venture Exchange;  and (v) waive any past defaults, and direct the debenture trustee to waive any past defaults, on the part of the Corporation in complying with any and all provisions of the Indenture.
Alain Lambert, Chairman and CEO of Cyprium commented: “Following our successful conversion of$118,000 of secured debt into non-secured convertible debt in April and the extension ofUSD$813,750 in loans in June, we were approached by several holders of the Debentures expressing an interest in extending the maturity date and rendering the Debentures convertible. It is on that basis that we have called a special Debenture holder meeting for them to consider the matters brought forth at the meeting. We are closely evaluating similar requests from other lenders.”

The Indenture provides that one or more Debenture holders present in person or represented by proxy and owning or representing at least 25% of the principal amount of the Debentures then outstanding represent in person or by proxy and passed by the favourable votes of the holders of not less than 66⅔% of the principal amount of the outstanding Debentures present or represented by proxy at the meeting and voted upon on a poll on such resolution.

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