VANCOUVER, BC, Oct. 29, 2020 /CNW/ - Lumina Gold Corp.
(TSXV: LUM) (OTCQX: LMGDF) ("Lumina" or the "Company") is pleased
to announce that it has entered into an agreement with the
Company's largest shareholder, Ross J.
Beaty to establish a C$5.0
million unsecured credit facility (the "Facility"). The
Facility will provide short-term financing for general corporate
and working capital purposes. The Facility bears interest of 8.0%
per annum and matures on the earlier of: (i) September 30, 2021, (ii) two business days after
the Company receives aggregate gross proceeds from one or more
equity financings in excess of C$10.0
million; or (iii) the date of a change of control of the
Company, at which time it must be repaid in full. The Facility also
has a 1.0% standby fee, as well as a 1.0% drawdown fee. Lumina will
make an initial draw on the Facility of C$0.5 million.
Mr. Beaty is considered a "related party" of the Company, and
the Facility constitutes a "related party transaction" within the
meaning of Multilateral Instrument 61-101 - Take-over Bids and
Special Transactions ("MI 61-101"). The Facility is exempt from
the formal valuation and minority approval requirements of MI
61-101 as neither the fair market value of the Facility, nor the
fair market value of the consideration for the Facility, exceeds
25% of the Company's market capitalization.
To the knowledge of the Company or any director or senior
officer of the Company, after reasonable inquiry, no "prior
valuations" (as defined in MI 61-101) in respect of the Company
that relate to the Facility, or are relevant to the Facility, have
been prepared within 24 months preceding the date hereof.
All of the terms and conditions of the Facility were reviewed
and unanimously approved by the board of directors of the Company
on October 28, 2020.
About Lumina Gold
Lumina Gold Corp. (TSXV: LUM) is a Vancouver, Canada based precious and base
metals exploration and development company focused on the Cangrejos
Gold-Copper Project located in El Oro Province, southwest
Ecuador. Lumina has an experienced
management team with a successful track record of advancing and
monetizing exploration projects.
Further details are available on the Company's website at
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LUMINA GOLD CORP.
Signed: "Marshall Koval"
Marshall Koval, President
& CEO, Director
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 news release.
SOURCE Lumina Gold Corp.