Mr. Carlos Ballon reports
XIANA ANOUNCES FORBEARANCE AGREEMENT
Xiana Mining Inc. has entered into a forbearance agreement dated July 6, 2020, with Bluequest Resources AG in connection with the loan advanced by
Bluequest in the principal amount of $10-million (U.S.) pursuant to the terms of a loan
agreement dated Oct. 24, 2018, as amended on July 29, 2019, between the
company and Bluequest.
Xiana is in default under the Loan Agreement for failing to make the required interest payments when
due, failing to comply with the financial covenants in the Loan Agreement and as a result of the filing
of the previously announced reorganization court proceeding involving Minera de Altos Punitaqui
Limitada ("MAP") in Chile before the 21st Civil Court of Santiago (the "Chilean MAP Proceeding").
Under the terms of the Forbearance Agreement, Bluequest has agreed to not exercise its rights and
remedies in Canada under the Loan Agreement, subject to the Company's compliance with the
Forbearance Agreement, until the earlier of August 12, 2020 (which may be automatically extended
until September 17, 2020 provided MAP has obtained the support of 50% of the creditors in the Chilean
MAP Proceedings) and the occurrence of certain events contemplated in the Forbearance Agreement,
including, among others, the failure of the Chilean MAP Proceeding or any other default under the Loan
As previously announced its June 1, 2020 news release, the Company and MAP continue to seek
opportunities to advance liquidity solutions and long-term solutions for viability of MAP during the
financial insolvency protection period provided under the Chilean MAP Proceeding. Map was
successful in securing support from 40.1% of its arm's length creditors which allowed for a 30 day
extension to the Financial Relief period. The meeting of creditors is now scheduled for August 12,
2020. Additionally, the Company is continuing to work with all relevant stakeholders with a view
towards finding a timely solution and will update shareholders in due course.
As disclosed in the Company's news releases dated April 28, May 29, June 1, June 15, June 26, 2020
and July 3, 2020, the Chilean government has declared a 90-day state of emergency which took effect
on March 19, 2020. A quarantine period was also issued which has now been extended from July 10,
2020 until July 17, 2020. The movement of goods, supplies and services has been severely impacted
to due to these measures.
About Xiana Mining Inc.
Xiana Mining is a TSX Venture Exchange listed mining company focused on its producing operations
and development properties in Region IV, Chile. Xiana acquired ownership of 100% of Minera Altos
de Punitaqui ("MAP") from Glencore plc in November 2018. MAP is comprised of four producing
copper-gold mines, a 3,600 tpd concentrator and associated infrastructure.
We seek Safe Harbor.
© 2020 Canjex Publishing Ltd. All rights reserved.