Cyprium Seeks Financing for Potosi Post-Closing Payment

Cyprium Mining Corp. (TSXV:CUG) has entered into debt settlement agreements with various creditors who are not insiders of the company to settle up to $248,703 of indebtedness by the issuance of up to 100,000 units at a price of 6.5 cents per unit, up to 3,427,273 units at a price of 5.5 cents per unit, up to 10,318 common shares in the capital of the company at a price of 6.5 cents per common share, up to 368,900 common shares in the capital of the company at a price of six cents per common share and up to 561,782 common shares at a price of 5.5 cents per common share. Each Unit for Debt will be comprised of one Common Share in the capital of the Company and one share purchase warrant of the Company (“Warrant”). Each Warrant will be exercisable into one Common Share at an exercise price of $0.10, expiring two years from the date of issuance.
Closing of the Debt Conversions and the issuance of the Common Shares and the Warrants is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange Inc. Pursuant to applicable securities laws, all securities issued pursuant to the above-mentioned transactions will be subject to a hold period of four months plus one day following the closing of the Debt Conversions.
In addition, as announced on October 29th, 2015, upon closing of the acquisition of a controlling interest in a joint venture with respect to the Potosi silver mine located in the mining district of Santa Eulalia in Mexico and the property adjacent to the south of the Potosi silver mine known as La Chinche, the Company acquired from an arms’ length third party (the “Arms’ Length Party”) certain rights with respect to the Potosi silver mine, including the rights to mine the Potosi silver mine (the “Rights”). The total purchase price for the Rights was US$746,846 (the “Purchase Price”) which was payable as to US$400,000 in cash at closing in October 2015 and US$346,846 to be paid in monthly installments starting eight months after the date of the closing (the “Post-Closing Amount”). The Company had recently been negotiating with the Arms’ Length Party to extend and/or restructure the repayment of the Post-Closing Amount. Cyprium has been informed by the Arms’ Length Party of its intent to end negotiations and demanded the payment of the Post-Closing Amount. Cyprium continues to evaluate financing options to finance the payment of the Post-Closing Amount.
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