Robex: Modification of Terms of Four Convertible Debentures Issued on July 2, 2015
QUEBEC CITY, QUEBEC--(Marketwired - Jul 4, 2016) - Robex Resources Inc. ("Robex" and / or "the Company") (TSX VENTURE:RBX)(FRANKFURT:RB4) proceeded with the modification of terms of four convertible debentures issued on July 2, 2015 representing, for the amended debentures, a principal amount of $ 7,105,000. The modification was made to pay the accrued interest on the anniversary date of the issuance of the Debentures in four equal installments payable on July 2, 2016, October 1, 2016, January 1, 2017 and April 1, 2017.
The above modification consists of a "transaction with a related party" as defined in Regulation 61-101 the Protection of Minority Security Holders in Special Transactions ("Regulation 61-101"), since it is regarding Mr. Georges Cohen and Claude Goulet's debentures, director and manager of the Company. However, it is exempt from the requirement to prepare a formal evaluation and minority approval provided for in Regulation 61-101 under the exemptions in subsections 5.5 (a) and Section 5.7 (1) (a ) of Regulation 61-101, since the fair market value of the anticipated participation of the specified person or the consideration paid does not exceed 25% of Robex's market capitalization. An important change report concerning the proposed modification will be filed on the SEDAR website.
Also, the Company defers the maturity date of the loan in the amount of 1 million euros made by Mr. Georges Cohen, president and CEO of the Company to March 31, 2017. The loan agreement reached in January 2016 foresaw repayment on or before June 30, 2016; the parties agreed to extend the deadline in order to allow the company to preserve their cash flow until they achieve their production target of 4000 tpd at the Nampala mine in Mali. The eight percent (8%) interest rate remains unchanged.
The modification to the terms of the loan consists of a "transaction with a related party" as defined in Regulation 61-101 the Protection of Minority Security Holders in Special Transactions ("Regulation 61-101"). However, it is exempt from the requirement to obtain minority approval provided for in Regulation 61-101 under the exemption in subsection 5.7 (1) (f), since the transaction is a loan based on reasonable business terms and is beneficial to the company. An important change report concerning the proposed modification will be filed on the SEDAR website.
This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" as set out within the context of security law. This forward-looking information is subject to many risks and uncertainties, some of which are beyond Robex's control. The actual results or conclusions may differ considerably from those that have been set out, or intimated, in this forward-looking information. There are many factors which may cause such disparity, especially the instability of metal market prices, the results of fluctuations in foreign currency exchange rates or in interest rates, poorly estimated reserves, environmental risks (stricter regulations), unforeseen geological situations, unfavourable extraction conditions, political risks brought on by mining in developing countries, regulatory and governmental policy changes (laws and policies), failure to obtain the requisite permits and approvals from government bodies, or any other risk relating to mining and development. There is no guarantee that the circumstances anticipated in this forward-looking information will occur, or if they do occur, how they will benefit Robex. The forward-looking information is based on the estimates and opinions of Robex's management at the time of the publication of the information and Robex does not assume any obligation to make public updates or modifications to any of the forward-looking statements, whether as a result of new information, future events, or any other cause, except if it is required by securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact
Augustin Rousselet, CFO
(581) 741-7421
info@robexgold.com