Mr. Eric Edwards reports
TRIMETALS MINING ANNOUNCES CONVERSION OF CONVERTIBLE NOTES, CLOSING OF FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT FOR $450,000, AND PROVIDES UPDATE ON BOLIVIAN ARBITRATION PROGRESS
Trimetals Mining Inc. has closed the first tranche of a non-brokered private placement, raising gross proceeds of $450,000 from the sale of 6,428,571 units priced at seven cents per unit.
Each unit consists of one common share of the company and one-half of one common share purchase warrant of the company. Each warrant is exercisable by the holder to acquire one additional common share of the company at a price of 11 cents for a period of 24 months.
The net proceeds from the private placement will be used for working capital and general corporate purposes.The company is working with other interested shareholders and finding a positive reception to potentially expand both the size of the financing and close a second tranche.
Eric Edwards, president and chief executive officer of Trimetals Mining, and Robert van Doorn, chairman of Trimetals Mining, both made investments in the private placement.Mr. Edwards and Mr. van Doorn, each being a related party of the company (as such term is defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions, each subscribed for 500,000 units.Such subscriptions each constituted a related party transaction under MI 61-101.The company relied upon exemptions from the valuation and minority shareholder approval requirements of MI 61-101 available, pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the subscriptions from Mr. Edwards and Mr. van Doorn are less than 25 per cent of the company's market capitalization.
Mr. Edwards commented, "We are pleased with the support that we have received from our existing shareholders and directors as the company makes progress to sharpen its focus on gold exploration in the Western United States, reduce holding costs and streamline administration."
Notes conversion
On Oct. 19, 2018, the holders of two secured convertible notes in the aggregate principal amount of $2,296,000 converted 100 per cent of the outstanding balance of the convertible notes, plus accrued interest, into an aggregate of 33,398,487 common shares of Trimetals Mining at an amended conversion price of seven cents per common share. The convertible notes, as well as the security interests provided to secure payment of the convertible notes, were thereby extinguished.
Mr. Edwards commented: "The company is now long-term debt free.In addition to being relieved of the debt service costs, the company is released from any security pledges or associated demands."
Bolivian arbitration update
The Permanent Court of Arbitration (PCA), on behalf of the arbitral tribunal, advised the parties to the arbitration of the passing of Francisco Vicuna, co-arbitrator appointed by SAS Ltd. in this arbitration, and informed the parties as follows:
As previously indicated to the parties on July 12, 2018, the award was finished and only the review of its translation remained. The award was discussed and drafted by the tribunal in Spanish, one of the languages of the proceedings. Mr. Vicuna approved and signed the award in Spanish. The English version of the award was finalized, but was not able to be approved or signed by Mr. Vicuna due to his unfortunate passing. The tribunal informs the parties that it will advise them on Nov. 2, 2018, of the exact date on which the award will be issued. The tribunal will issue the Spanish version of the award over the signature of all three arbitrators. The English version of the award will be issued over the signatures of arbitrators Eduardo Zuleta and Osvaldo Guglielmino, in accordance with the provisions of the UNICTRAL rules applicable in circumstances such as those arising from the passing of Mr. Vicuna.
Mr. Edwards commented: "We extend our deepest sympathies to the family of Professor Orrego Vicuna. We look forward to receiving the final award in this matter and to this important next step toward a satisfactory conclusion of this arbitration."
About Trimetals Mining Inc.
Trimetals Mining is a growth-focused mineral exploration company creating value through the exploration and development of the near-surface, oxide, heap-leachable Gold Springs gold project in mining-friendly Utah and Nevada, in the United States, and the Escalones copper-gold skarn/porphyry deposit in Chile. The company combines a record of discovery and advancement of large projects, mining and exploration supportive jurisdictions, low-political-risk areas, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry.
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