/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
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VANCOUVER, BC, August 4, 2020 /CNW/ - Elemental Royalties
Corp. ("Elemental" or "the Company") (TSXV: ELE)
announces that it has entered into a settlement agreement with
Tembo Mining Capital Fund LP ("Tembo") that will result in
the settlement of C$115,494 in debt
(the "Debt") in exchange for the issuance by the Company of
65,996 common shares (the "Settlement Shares"). The Debt was
incurred pursuant to a bridge loan made by, among others, Tembo to
the Company (then Fengro Industries Corp.) in March 2019 (the "Facility").
The Settlement Shares will be issued at a deemed price of
CAD$1.750015, being the market price
at the time of the agreement, to settle a total debt of
C$115,494 pursuant to the Facility.
This Debt is comprised of the principal debt amount of C$100,000, an establishment fee of C$5,000 and interest of C$10,494, being all of the obligations owed by
Elemental to Tembo under the terms of the Facility. The issuance of
the Settlement Shares remains subject to the approval of the TSX
Venture Exchange. When issued, the Settlement Shares will be
subject to a statutory hold period expiring on the date that is
four months and one day after their issue.
Outstanding obligations of CDN$3,128,218.60 owing to Tembo under a
US$2 million convertible loan
facility previously established by Elemental Royalties Limited (now
a wholly owned subsidiary of the Company) were converted into
common shares of the Company in connection with the closing of the
recently completed reverse takeover transaction at a price of
C$1.30 per common share resulting in
the issuance of 2,406,322 common shares to Tembo. For further
information on the convertible facility, please refer to the Filing
Statement posted to Elemental's issuer profile on SEDAR at
www.sedar.com.
About Elemental:
Elemental is a gold focused royalty company with a portfolio of
five royalties over producing assets spanning Burkina Faso, Chile, Mexico, Kenya
and Western Australia. The
portfolio is heavily weighted towards precious metals and producing
royalties, providing a diversified foundation of revenue from the
outset, while minimising shareholder dilution.
Forward-Looking Statements
This press release may contain certain forward-looking
information and statements ("forward-looking information") within
the meaning of applicable Canadian securities legislation, that are
not based on historical fact, including without limitation
statements containing the words "believes", "anticipates", "plans",
"intends", "will", "should", "expects", "continue", "estimate",
"forecasts" and other similar expressions. Readers are cautioned to
not place undue reliance on forward-looking information. Actual
results and developments may differ materially from those
contemplated by these statements. Elemental undertakes no
obligation to comment analyses, expectations or statements made by
third-parties in respect of Elemental, its securities, or financial
or operating results (as applicable). Although Elemental believes
that the expectations reflected in forward-looking information in
this press release are reasonable, such forward-looking information
has been based on expectations, factors and assumptions concerning
future events which may prove to be inaccurate and are subject to
numerous risks and uncertainties, certain of which are beyond
Elemental's control. The forward-looking information contained in
this press release are expressly qualified by this cautionary
statement and are made as of the date hereof. Elemental disclaims
any intention and has no obligation or responsibility, except as
required by law, to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise.
Neither the TSX Venture Exchange Inc. nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange Inc.) accepts responsibility for the adequacy
or accuracy of this press release.
SOURCE Elemental Royalties Corp.