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Enter Symbol
or Name
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Arian Silver Corp (2)
Symbol AGQ
Shares Issued 33,907,448
Close 2014-10-29 C$ 0.65
Market Cap C$ 22,039,841
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Arian Silver replaces Quintana's 14% note with 8% note

2014-10-30 14:14 ET - News Release

Mr. Jim Williams reports

ARIAN SILVER RESTRUCTURES QUINTANA LOAN NOTE

Further to Arian Silver Corp.'s news release of Oct. 15, 2014, the company has obtained conditional approval from the TSX Venture Exchange to restructure the existing note with Quintana AGQ Holding Co. LLC and has accordingly issued to Quintana, by private placement, a $16,452,343 (U.S.) senior secured convertible note and 12,151,926 common share purchase warrants.

The note replaces a previously issued $15,585,000-(U.S.)-principal-amount senior secured convertible note held by Quintana, which was convertible into common shares in the capital of the company at a price of $1.10 per common share, bore interest at a rate of 14 per cent per annum and had a maturity date of March 31, 2015.

The note is convertible, in whole or in part, at the option of Quintana, into common shares in the capital of the company at a price of 75.67 cents per common share, bears interest at a rate of 8 per cent per annum and will mature 36 months from the date of issuance, Oct. 29, 2014. The principal of the note would be amortized over 18 months, commencing 18 months after the effective date of the agreement.

The warrants are each exercisable to acquire one common share of the company at an exercise price of $1 per common share.

The note and the warrants are subject to a four-month hold period which will expire on March 1, 2015.

The company will seek approval from its shareholders for the creation of a new control person for purposes of TSX-V rules. Until such shareholder approval is obtained, Quintana's conversion rights under the note and exercise rights under the warrants are limited, so as to restrict it from acquiring in excess of 19.9 per cent of the outstanding Arian common shares. Arian will be posting a circular to shareholders with details of a general meeting as soon as practicable. A copy of the investment agreement pursuant to which the terms of the note and the warrants were agreed is available under the company's profile on SEDAR.

We seek Safe Harbor.

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