/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
MONTREAL, July 18, 2016 /CNW Telbec/ - Cyprium Mining
Corporation (TSXV: CUG) ("Cyprium" or the
"Company") is pleased to provide an update on recent
financing activities totaling $1,271,810. These financing activities consisted
in the successful completion of a private placement of $232,310 and the extension of the maturity date
of various loans totaling US $813,750
(the "Loan Extensions").
Cyprium has completed its previously announced private placement
of up to 3,000,000 units (the "Units") at a price of
$0.065 per Unit for gross proceeds of
up to $195,000 (the
"Offering"). Each Unit is comprised of one common share in
the capital of the Corporation ("Common Share") and one
share purchase warrant of the Corporation ("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. The Company also issued 466,375 units at
a price of $0.08 per unit for gross
proceeds of $37,310 (the
"Additional Units"). Each Additional Unit is comprised of
one Common Share and one share purchase warrant of the Corporation,
with each warrant being exercisable into one Common Share at an
exercise price of $0.105 expiring two
years from the date of issuance. The net proceeds from the Offering
will be used to fund the continued activities at the Potosi nine located in Northern Mexico.
As part of the Offering a director of the Company (the
"Insider") together with other arm's length shareholders of
the Company had arranged for the sale of up to 839,000 Common
Shares of their personal holdings at a price of $0.075 per Common Share through the facilities of
the TSX Venture Exchange (the "Swap"). The proceeds from the
Swap were used to facilitate such Insider and shareholders
subscription for their participation in the Offering.
Cyprium has paid finders a cash commission of up to 8% of the
proceeds that have resulted from such parties efforts, subject to
compliance with applicable securities laws. The finders have also
been granted warrants to purchase up to 8% of the number of Units
sold under the Offering, with each warrant entitling the holder to
purchase one Unit at $0.065 per Unit
for a period of eighteen months from the date of closing.
The Company has also renegotiated three loans with arms-length
lenders for a total amount US $313,750 and these loans were extended by a
period of twelve months beyond their original maturity dates. The
Company has issued 125,000 Common Shares (the "Bonus
Shares") and 4,833,284 common share purchase warrants
("Bonus Warrants") as bonuses for the extension of the
original maturity dates. Each Bonus Warrant will entitle the holder
to purchase one common share at a price of $0.07 per common share before the loan repayment
date. Finally, the Company has extended the maturity date for a
loan in the amount of US $500,000
from May 5th, 2016 to
August 7th, 2016. As
consideration for the extension, the Company has issued one million
common share purchase warrants (the "Extension Warrants")
entitling the holder to purchase one common share at a price of
$0.10 per common share until the loan
repayment date.
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 transactions.
Finally, the Company announces that it that it has granted,
pursuant to its stock option plan, a total of three million stock
options to directors, officers, employees and consultants
exercisable at a price of $0.09 per
share for a five year term.
About Cyprium Mining Corporation
For the description of Cyprium Mining's business and the
Company's Forward Looking Statement Disclaimer which form an
integral part of this news release please visit our website at:
http://www.cypriummining.com/en/investors/disclaimers
Neither TSX Venture Exchange Inc. nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange Inc.) accepts responsibility for the adequacy or
accuracy of this release.
This news release contains "forward-looking information" (within
the meaning of applicable Canadian securities laws) and "forward
-looking statements" (within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995). Such statements or
information are identified with words such as "anticipate",
"believe", "expect", "plan", "intend", "potential", "estimate",
"propose", "project", "outlook", "foresee" or similar words
suggesting future outcomes or statements regarding an outlook. Such
statements include, among others, those concerning the Company's
anticipated plans for developments of the Company and its mining
projects.
Such forward-looking information or statements are based on a
number of risks, uncertainties and assumptions which may cause
actual results or other expectations to differ materially from
those anticipated and which may prove to be incorrect. Assumptions
have been made regarding, among other things, management's
expectations regarding future growth, plans for and completion of
projects by Company's third party relationships, availability of
capital, and the necessity to incur capital and other expenditures.
Actual results could differ materially due to a number of factors,
including, without limitation, operational risks in the completion
of Company's anticipated projects, delays or changes in plans with
respect to the development of Company's anticipated projects by
Company's third party relationships, risks affecting the ability to
develop projects, risks inherent in operating in foreign
jurisdictions, the ability to attract key personnel, and the
inability to raise additional capital. No assurances can be given
that the efforts by the Company will be successful. Additional
assumptions and risks are set out in detail in the Company's
MD&A, available on SEDAR at www.sedar.com.
Although the Company believes that the expectations reflected in
the forward-looking information or statements are reasonable,
prospective investors in the Company's securities should not place
undue reliance on forward-looking statements because the Company
can provide no assurance that such expectations will prove to be
correct. Forward-looking information and statements contained in
this news release are as of the date of this news release and the
Company assumes no obligation to update or revise this
forward-looking information and statements except as required by
law. Investors should note that, while the mineralized material
being processed by the Company is assayed, there is no certainty
that the proposed operations will be economically or technically
viable. Investors should also note that the Potosi silver mine and La Chinche property
have no established mineral resources or mineral reserves as
defined by NI 43-101. Although Cyprium Mining has made a production
decision regarding the Potosi
silver mine based on historical production records, historical
results of sampling and drilling, a feasibility study of its
projects has not been completed and there is no certainty that the
proposed operations will be economically or technically viable.
SOURCE Cyprium Mining Corporation