The TSX Venture Exchange has accepted documentation in connection with a support agreement dated Oct. 15, 2015, among Aurcana Corp., its subsidiaries and Orion Mine Finance (Master) Fund 1 LP, and an arrangement agreement dated Oct. 30, 2015, pursuant to which Aurcana has agreed to implement a restructuring transaction under which all of Aurcana's debt obligations to the lender, as lender under the company's amended and restated senior secured credit facility dated April 29, 2014, will be extinguished.

The restructuring transaction has the following key elements:

• All of the debt obligations due and in default under the facility will be exchanged for Aurcana's interests in its Mexican subsidiaries that own the La Negra mine, resulting in the elimination of approximately $38.7-million (U.S.) of principal amount of secured debt due and in default under the facility on completion of the restructuring transaction;
• Aurcana's annual interest costs will be reduced by approximately $2.3-million (U.S.);
• A newly incorporated affiliate of the lender (Newco) will purchase certain non-core equipment from Aurcana and certain of its subsidiaries for a total purchase price of $3.5-million (U.S.);
• Newco will pay Aurcana $40,000 (U.S.) per month for a total period of 12 months for certain consulting services to be provided to Newco by specified officers of Aurcana in connection with the operation of the La Negra mine;
• Aurcana will retain all of its other assets, including the Shafter mine, with no dilution to shareholders;
• The restructuring transaction is expected to be implemented on or before Dec. 4, 2015.

The exchange has been advised that approval of the restructuring transaction was received from of the Ontario Supreme Court of Justice on Nov. 13, 2015.

For further information, see Aurcana's news releases dated Oct. 30, 2015, and Nov. 16, 2015, which are available under Aurcana's profile on SEDAR.