TSX Venture Exchange Symbol FNR
SASKATOON, June 1, 2020 /CNW/ - 49 North Resources Inc.
("49 North" or the "Company") (TSXV: FNR) announces
that with respect to the maturity of its outstanding 2015 2.5%
Convertible Senior Secured Debentures – Series 1 (the "Series 1
Senior Debentures"), it has paid today, in cash, due interest
in the amount of approximately $2.50
per $100 principal amount of the
Series 1 Senior Debentures, however, the Company has not paid the
principal due and owing in the amount of $2,746,827. 49 North instead intends to seek
approval from the debenture holders to extend the maturity date of
the Series 1 Senior Debentures by three (3) years to June 1, 2023 and to reduce the conversion price
for the Series 1 Senior Debentures from $0.50 to $0.20 per
common share of the Company.
The amendments to the Series 1 Senior Debentures will be sought
contemporaneously with a three (3) year extension of the Company's
outstanding 2015 2.5% Convertible Senior Secured Debentures –
Series 2 (the "Series 2 Senior Debentures", and together
with the Series 1 Senior Debentures, the "Senior
Debentures") that come due on December
18, 2020. 49 North will also be seeking approval from the
holders of Senior Debentures of a corresponding reduction of the
conversion price for the Series 2 Senior Debentures from
$0.50 to $0.20 per common share of the Company. The
current outstanding principal of the Series 2 Senior Debentures is
$1,824,881, with accrued interest of
$20,442.
Definitive information with respect to the proposed Debenture
amendments, once finalized, will be outlined in a management
information circular expected to be disseminated to the Debenture
holders in late June or early July
2020. The proposal is made, with respect to the Senior
Debentures, pursuant to the provisions of the trust indenture dated
May 27, 2015 (the "Senior
Indenture") between 49 North and Alliance Trust Company of
Canada (the "Trustee")
which allows for the desired amendments upon approval of at least
66⅔% of the principal amount of the applicable Debentures voted at
a meeting, either in person or by proxy or by written resolution.
Implementation of the amendment is subject to receipt of necessary
approvals from the TSX Venture Exchange.
The payment of interest on the Series 1 Senior Debentures was
made to debenture holders of record as of June 1, 2020 and related to interest accrued from
June 2, 2019 to June 1, 2020. The total annual interest payment
is $68,671.
Additionally, the Company announces that pursuant to blanket
relief granted by the securities regulatory authority or regulator
in each province and territory of Canada as a result of the COVID-19 pandemic,
49 North had announced on April 29,
2020 that it was postponing the filing and delivery, as
applicable, of certain continuous disclosure documents of the
Company. In accordance with the requirements of the blanket relief,
the Company today confirms that there have been no material
business developments respecting 49 North since April 29, 2020 except with respect to the Senior
Debentures as outlined above.
About 49 North Resources Inc.
49 North is a Saskatchewan
focused resource investment company. Our diversified portfolio of
assets includes investments in shares and other securities of
junior and intermediate mineral and oil and gas exploration
companies.
CAUTION REGARDING FORWARD LOOKING
STATEMENTS
Information in this news release that is not a
statement of historical fact constitutes forward-looking
information. Forward-looking statements contained herein include
statements relating to any future payment under or amendment
to the terms of the Debentures, any actions or approvals of the TSX
Venture Exchange, the Trustee or the applicable holders of
Debentures with respect to amending the Debentures.
Forward-looking statements are based on assumptions management
believes to be reasonable at the time such statements are made.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. Factors that may cause actual
results to differ materially from expected results described in
forward-looking statements include, but are not limited to:
the risk that any amendment to the Debentures may not be
approved by the TSX Venture Exchange, the Trustee or the applicable
holders of Debentures, the risk that the Trustee may take
enforcement action under the Senior Indenture and related security
agreements, uncertainties as a result of the global Covid-19
pandemic as well as those risk factors set out in the Company's
Management Discussion and Analysis and other disclosure documents
available under the Company's profile at www.sedar.com.
Forward-looking statements contained herein are made as of the date
of this news release and the Company disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
Neither 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.
SOURCE 49 North Resources Inc.