Kutcho Copper Amends Convertible Loan Agreement and Receives Credit Facility from Wheaton Precious Metals
November 25 2019 - 8:00AM
Kutcho Copper Corp. (TSXV: KC) (OTC: KCCFF)
(“Kutcho Copper” or the “Company”) announces that Wheaton Precious
Metals Corp. (“Wheaton”) has agreed to amend the terms (the
“Amendment”) of its $20 million convertible debenture investment
(the “Original Debenture”) in Kutcho Copper that closed on December
14, 2017. Wheaton and Kutcho Copper have agreed that the 2 year
interest deferral provided in the Original Debenture may, at the
election of Kutcho Copper, be extended for 4 years. Wheaton has
also agreed to the removal of the ability to convert a portion of
deferred interest into Kutcho Copper shares. Kutcho has received
conditional approval from the TSX Venture Exchange for the
Amendment. For more information regarding the Original Debenture,
please see the Company’s October 31, 2017 and December 15, 2017
news releases.
Wheaton has also agreed to make a non-revolving
term loan available to the Company for up to $1,300,000 CAD (the
“Credit Facility”) with a maturity date of December 31, 2020.
Advances under the Credit Facility will be used by the Company if
needed and solely for certain costs and expenses in connection with
the Kutcho project. The credit facility will bear interest at the
rate of 15% per annum. Closing of the Credit Facility, and
any advance thereunder, is subject to customary closing conditions,
including the delivery of security.
Vince Sorace, President and CEO of Kutcho Copper
states, “Wheaton continues to show their support for the Kutcho
project by allowing us to defer interest payments due under the
convertible debenture, as well as provide us with additional
capital to help advance the Kutcho project. The Company
appreciates their commitment and validation to this great project
as we move towards Feasibility”.
Wheaton holds approximately 10.48% of the
Company’s outstanding shares pursuant to various prior transactions
with Kutcho Copper, as announced in the fall of 2017 and which
closed December 14, 2017. Accordingly, the Credit Facility
and the Amendment may be considered to be related party
transactions under Multilateral Instrument 61-101, but are exempt
from the valuation requirements of MI 61-101 because Kutcho Copper
is listed on the TSX Venture Exchange (subsection 5.5(b) of MI
61-101) and the minority shareholder approval requirements because
the Credit Facility does not have an equity component (subsection
5.7(f) of MI 61-101) and the Amendment (and the fair market value
of the consideration thereunder) is less than 25% of the Company’s
market capitalization (subsection 5.7(a) of MI 61-101).
About Kutcho Copper Corp
Kutcho Copper Corp. is a Canadian resource
development company focused on expanding and developing the Kutcho
high grade copper-zinc project in northern British Columbia.
Committed to social responsibility and the highest environmental
standards, the Company intends to progress the Kutcho Project
through feasibility and permitting to a positive construction
decision.
Vince Sorace President & CEO, Kutcho Copper
Corp.
For further information regarding Kutcho Copper
Corp., please email info@kutcho.ca or visit our website at
www.kutcho.ca.
Cautionary Note Regarding Forward-Looking
Statements
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
This news release contains certain statements
that may be deemed “forward-looking statements” with respect to the
Company within the meaning of applicable securities laws, including
statements with respect to the Company’s future operational plans,
estimated mineral resources and mineral reserves, the timing and
amount of estimated production, costs of production, capital
expenditures, commodity price assumptions, the Company’s ability to
successfully obtain all regulatory approvals and permits to
commence and conduct mining operations, environmental risks and
title challenges. Forward-looking statements are statements that
are not historical facts and are generally, but not always,
identified by the words “expects”, “plans”, “anticipates”,
“believes”, “intends”, “estimates”, “projects”, “potential” and
similar expressions, or that events or conditions “will”, “would”,
“may”, “could” or “should” occur. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance, are subject to risks and uncertainties, and
actual results or realities may differ materially from those in the
forward-looking statements. Such material risks and uncertainties
include, but are not limited to, the Company’s ability to obtain
all requisite approvals, including approval of the TSX Venture
Exchange and securities regulatory authorities, if required for a
transaction or financing, the Company’s ability to raise sufficient
capital to fund its obligations under its property agreements going
forward, to maintain its mineral tenures and concessions in good
standing, to explore and develop the Kutcho project or its other
projects, to repay its debt and for general working capital
purposes; changes in economic conditions or financial markets; the
inherent hazards associates with mineral exploration, and mining
operations, future prices of copper and other metals, changes in
general economic conditions, accuracy of mineral resource and
reserve estimates, the ability of the Company to obtain the
necessary permits and consents required to explore, drill and
develop the Kutcho project and if obtained, to obtain such permits
and consents in a timely fashion relative to the Company’s plans
and business objectives for the projects; the general ability of
the Company to monetize its mineral resources; and changes in
environmental and other laws or regulations that could have an
impact on the Company’s operations, compliance with environmental
laws and regulations, aboriginal title claims and rights to
consultation and accommodation, dependence on key management
personnel and general competition in the mining industry.
Forward-looking statements are based on the reasonable beliefs,
estimates and opinions of the Company’s management on the date the
statements are made. Except as required by law, the Company
undertakes no obligation to update these forward-looking statements
in the event that management’s beliefs, estimates or opinions, or
other factors, should change.
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