Kutcho Copper Eliminates Debt and Expands Partnership with Wheaton Precious Metalse
The Original Agreement, as modified by the Amendment, is referred to as the “PMPA”.
The Amendment provides for the settlement and termination of the Company’s indebtedness (the Existing Convertible Debenture (the “Convertible Debenture”) and the Loan Agreement (the “Loan Agreement”)), both as amended with Wheaton , totaling approximately
Under the original agreement, precious metals flow was to be reduced by 100% to 66.67% of gold and silver production payable after delivery of 5.6 million ounces of silver and of 51,000 ounces of gold (“flow reduction”). As part of the settlement and termination of the Convertible Debenture and Loan Agreement, the Amendment removes the Stream Reduction and Additional Expansion Payment of up to
Finally, the Amendment provides that, in connection with the settlement and termination of the Convertible Debenture and Loan Agreement, Wheaton will receive
After the closing of the Amendment, assuming that
Wheaton currently holds 7,153,846 common shares and 1,000,000 common share purchase warrants (the “Warrants”), representing approximately 6.87% of the issued and outstanding common shares of the Company (on a non-diluted basis ) and 25.26% on a partially diluted basis, assuming that Wheaton of 1,000,000 warrants and the conversion of the convertible debenture for the full principal amount, which would result in the issuance of 24,615,384 common shares . Accordingly, Wheaton is considered a “related party” to the Company and the Amendment may be considered a “related party transaction” under Multilateral Instrument 61-101. The amendment and related transactions are exempt from the valuation requirements of NI 61-101 because Kutcho is listed on the
The common shares and warrants held by Wheaton are currently held for investment purposes only. Wheaton may from time to time in the future increase or decrease its ownership, control or direction of the common stock or any other securities of the Company, through market transactions, private agreements or otherwise. Wheaton intends to file an early warning statement (the “Early Warning Statement”) in accordance with applicable securities laws in connection with the transactions contemplated herein.
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Caution Regarding Forward-Looking Statements
This press release contains certain statements that may be deemed “forward-looking statements” with respect to the Company within the meaning of applicable securities laws, including statements regarding the Company’s future operating plans, the date of estimated closing of modification operations, mineral resources and mineral reserves, estimated production timing and amount, production costs, capital expenditures, raw material price assumptions, the Company’s ability to obtain successfully completed all regulatory approvals and permits to commence and conduct mining operations, environmental risks and title challenges. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”. , ‘estimates’, ‘projects’ , ‘potential’ and similar expressions, or that events or conditions ‘will’, ‘would’, ‘could’, ‘could’ or ‘should’ occur. Although the Company believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially. of those forward-looking statements. statements. These material risks and uncertainties include, but are not limited to, the Company’s ability to obtain all required approvals, including the approval of the