Red Tiger Announces Amendment to Loan Agreement
Toronto, Ontario / TheNewswire / April 11, 2016 - Red Tiger Mining Inc. (TSXV: RMN) ("Red Tiger" or the "Company") announces that it has amended its senior secured loan between Minerales Libertad, S.A. de C.V. ("Minerales"), the Company's wholly-owned subsidiary, and Gerald Metals S.A. ("Gerald Metals").
Under the terms of the amendment:
-Gerald Metals has loaned Minerales an additional US$400,000 for general working capital purposes.
-Tranche 1 under the Amended and Restated Loan Agreement has been split into Tranche 1A and 1B.
-Principal debt of US$500,000 has been moved from Tranche 2 under the Amended and Restated Loan Agreement, to Tranche 1A. Pursuant to the amendment, Tranche 1A consists of US$3,769,207 principal outstanding plus interest thereon.
-Tranche 1B consists of US$400,000.
-The interest rate on Tranches 1A, 1B and 2 is 13% per annum.
The loan amendment is considered to be a related party transaction within the meaning of TSX Venture Exchange ("TSXV") Policy 5.9, which incorporates Multilateral Instrument 61-101 ("MI 61-101"). The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(a) of MI 61-101 in respect of such participation.
About Red Tiger Mining
Red Tiger is engaged in copper cathode production, and in the exploration and development of copper and gold projects through its wholly-owned subsidiary, Minerales Libertad, S.A. de C.V. ("Minerales") at San Antonio de la Huerta, in the state of Sonora, Mexico.
On July 1, 2013, Minerales placed the Luz del Cobre Copper Project, an open-pit, heap leach, copper recovery operation into commercial production. The Company has other prospects on its over eleven thousand-hectare concession at various stages of exploration, and is potentially a gold producer in the mid-term.
Red Tiger is listed on the TSX Venture Exchange (symbol "RMN"). The number of shares outstanding is 144,446,957.
For further information, please contact:
info@redtigermining.com
www.redtigermining.com
David Lurie
CEO & CFO
dlurie@redtigermining.com
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 release.
Forward-Looking Information
This press release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that Red Tiger believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the Private Placement, the recommencement of mining operations and the filing and clearing of the PIFs with the TSX Venture Exchange) constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of Red Tiger based on information currently available to Red Tiger as well as certain assumptions including, without limitation, the assumption that Red Tiger will complete the Private Placement and be granted TSX Venture Exchange approval in respect of the private placement, and be able to recommence mining operations as proposed. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results of Red Tiger to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Red Tiger. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, TSX Venture Exchange approval for the Private Placement not being obtained, unforeseen difficulties in connection with the process for recommencing production at Red Tiger's mine.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Red Tiger disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although Red Tiger believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
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