At a special meeting of Cyprium Mining Corp. (CUG.V) debentureholders held on Sept. 21, 2016, the holders of $750,000 in principal amount of unsecured debentures bearing interest at 12 per cent per annum overwhelmingly approved all matters presented, including the extension of the maturity date from Feb. 28, 2017, to Feb. 28, 2019. The corporation had issued the debentures under a debenture indenture dated Feb. 28, 2014. The debentures were entitled to be voted at the meeting on the basis of one vote for each $1 of principal amount.
The matters approved at the meeting are to: (i) authorize CST Trust Company, as debenture trustee, to grant an extension of time for payment of principal on the debentures from Feb. 28, 2017, to Feb. 28, 2019; (ii) amend the indenture to allow past due and future interest to be payable through the issuance of common shares in the capital of the corporation; (iii) amend the indenture to allow for conversion of the principal amount and any accrued and unpaid interest of the debentures into common shares, the option of the holder, at a price per common share equal to 10 cents before Feb. 28, 2017, and 15 cents thereafter; (iv) approve the delisting of the debentures from the TSX Venture Exchange; and (v) waive any past defaults, and direct the debenture trustee to waive any past defaults, on the part of the corporation in complying with any and all provisions of the indenture.
The corporation is also pleased to announce that it has extended the maturity of $1,026,000 (U.S.) of 12.5-per-cent bonds from March 15, 2018, to Jan. 1, 2019. The bonds were issued as part of the bond financing announced by Cyprium in March, 2015. As part of the amendment of the bonds, the corporation was granted the option to pay all interests in common shares of the corporation.
Alain Lambert, chairman and chief executive officer of Cyprium, commented: "I'm glad to report that 96.8 per cent of the principal amount of debentures voted at the meeting were in favour of all matters presented. This sends a clear message of support for the company's business plan. Our objective remains to finalize in the next two weeks further extensions of the maturity date of various loans so that at least 90 per cent of the company's loans will mature in 2019. Achieving this objective will pave the way for greater access to the equity market as well as possible corporate transactions to ensure the development of the Potosi mine and the La Chinche exploration property."