Colombian Mines Corporation (TSXV:CMJ) announced it has entered into loan agreements for $143,205.
Colombian Mines Corp. has entered into loan agreements with Robert Carrington, president and chief executive officer of the company, Nathan Tewalt, an adviser of the company, and certain non-arm’s-length lenders, whereby the lenders have agreed to loan Colombian an aggregate of $143,205.10 for a period of 15 months at an interest rate of 10 per cent per annum. Colombian has the option to repay all or any part of the principal of the loan, together with accrued and unpaid interest, prior to the maturity date without notice or penalty.
As additional consideration of the loan, Colombian has agreed to issue 52,992 common shares and 2,599,142 warrants at an exercise price of five cents per common share for a period of 15 months to the lenders. The bonus shares and bonus warrants will be subject to a four-month hold period from the date of issuance.
The loan will be used for general working capital purposes. The loan agreements, bonus shares and bonus warrants are subject to approval from the TSX Venture Exchange.