VISCARIA UPDATE REGARDING FINANCING AND EXPECTED CLOSING
Danderyd 10th January 2019
Copperstone Resources AB (“Copperstone” or “the Company”) is pleased to announce that the Company has signed a 5-year 25 MSEK credit facility. In addition a non-binding term sheet regarding a convertible debt facility of 100 MSEK has been signed with a US-based fund. Upon the convertible debt facility becoming binding and the first tranche of 22.5 MSEK has been paid out, closing of the Viscaria acquisition is anticipated to occur shortly thereafter. In total, up to 125 MSEK will thereby be secured to finance the further development of New Copperstone including Viscaria.
Fenomena AB has agreed to a credit facility, for the Viscaria acquisition, of 25 MSEK at 5% annual interest rate to be amortized, no later than, at the earlier of First Copper from Viscaria or 10 January 2024.
Copperstone has also signed a non-binding term sheet regarding a convertible debt facility of 100 MSEK with a mid-tier US-based fund. Main terms and conditions of the convertible debt facility are: The debt commitment is divided in tranches of maximum 20-22,5 MSEK. The convertible debt notes held by the fund can be converted to Copperstone B-shares. Further tranches, should Copperstone opt to, can be drawn once the former tranche has been converted into shares. The conversion price is defined as the lower of 1.6 SEK/share and 93% of the 15-day low volume weighted average price of Copperstone prior to conversion. The convertible debt facility is non-interest bearing, the called upon tranche of the convertible facility will instead be subject to a fee of 4.5 percent of the total nominal amount.
Subject to the signing of the final agreement the financing through the first tranche of 22.5 MSEK, together with the above mentioned credit facility, will suffice to Close the Viscaria acquisition.
“I am pleased to bring forward Fenomena AB, originating from my hometown of Haparanda, as anchor investor. The convertible debt financing will contribute to the closing as well as to necessary working capital in the future. Thanks to this, the Copperstone team spirit, Regin Corporate Finance and Sunstone’s shared vision of New Copperstone, we are hereby taking a giant leap towards closing of the Viscaria acquisition, the largest underground copper mine in northern Europe in the 1980’s, while at the same time limiting upfront shareholder dilution to an absolute minimum”, comments Michael Mattsson, CEO of Copperstone.
For further information, please contact Chief Executive Officer Michael Mattsson, +46 705 739 777, email@example.com or visit the Copperstone website at www.copperstone.se
This press release contains insider information which Copperstone Resources AB (publ) is obliged to publish according to the EU market abuse regulation (MAR). This information was submitted for publication, through the above contact person’s agency, 22:05 CET on 10 January 2019.