Mr. Douglas Forster reports
NEWMARKET GOLD ANNOUNCES INTENT TO REDEEM OUTSTANDING CONVERTIBLE DEBENTURES
On March 30, 2016, Newmarket Gold Inc. intends to redeem in full all of its then-outstanding convertible unsecured debentures due April 30, 2018, in accordance with the provisions of the indenture dated as of April 5, 2013, as supplemented and amended by the first supplemental indenture dated as of July 10, 2015, in each case between the corporation and Equity Financial Trust Company.
The redemption price for the debentures shall be 100 per cent of the aggregate outstanding principal amount, together with accrued and unpaid interest up to, but excluding, the redemption date. In accordance with the indenture, the company intends to elect to satisfy its obligation to pay the redemption price by issuing to debentureholders common shares in the capital of the company, and to pay all accrued and unpaid interest up to, but excluding, the redemption date, in cash. The number of common shares delivered will be determined by dividing the redemption price by 95 per cent of the then-current market price (as defined in the indenture) of the common shares on the redemption date in accordance with the terms of the indenture. Debentureholders have the right, by giving notice to the trustee by no later than 5 p.m. ET on March 29, 2016, to elect to convert their debentures into common shares at the conversion price in effect on the date of conversion in accordance with the terms of the indenture.
We seek Safe Harbor.
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