Stockwatch

Xiana Mining Inc
Symbol	XIA
Shares Issued	57,507,681
Close 2020-07-07	C$ 0.06
Market Cap	C$ 3,450,461
Recent Sedar Documents

Xiana Mining signs forbearance deal with Bluequest

2020-07-10 14:16 ET - News Release

Subject: Xiana Mining Inc. - News Release PDF Document File: Attachment XIA-NR-ForbearanceAgmt-Jul10_20.pdf #507 - 837 West Hastings St. Vancouver, BC V6C 3N6 Telephone: (604) 685-1017 Mining Inc. Facsimile: (604) 685-5777 NEWS RELEASE XIANA ANOUNCES FORBEARANCE AGREEMENT Vancouver, B.C., July 10, 2020, Xiana Mining Inc. (TSX-V: XIA) ("Xiana" or the "Company") announces it has entered into a forbearance agreement dated July 6, 2020 (the "Forbearance Agreement") with Bluequest Resources AG ("Bluequest") in connection with the loan advanced by Bluequest in the principal amount of US$10 million (the "Loan") pursuant to the terms of a loan agreement dated October 24, 2018, as amended on July 29, 2019 (the "Loan Agreement") 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 Agreement. 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. Since the closing of the acquisition, Xiana has quickly moved towards executing an optimisation plan aimed at reducing costs, extending mine life and improving profitability. Xiana Mining Inc. 2 July 6, 2020 News Release Continued MAP owns a total land package of 11,838 hectares in Region IV comprised of exploration and exploitation concessions. Xiana is focussed on proving up the district scale potential of MAP's properties which will continue to provide sustainable feed for the concentrator and provide sustainable and increased production growth in the medium term at low cash costs. Xiana is also engaged in the evaluation of producing and development stage mineral resource opportunities on an ongoing basis. The Company's common shares are listed on the TSX Venture Exchange under the symbol XIA. For more information about the Company please visit www.xianamining.com. ON BEHALF OF THE BOARD OF DIRECTORS OF XIANA MINING INC. Carlos Ballon Carlos Ballon, Chairman & CEO For further information please contact: Anton (Tony) Drescher Chief Financial Officer Telephone: +1 (604) 685-1017 E-mail: ajd@harbourpacific.com Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward Looking Statements This press release may contain forward looking statements within the meaning of applicable Canadian securities legislation, including without limitation statements concerning future plans and objectives or expected results in respect of mine optimization, cost reduction and profitability. Although Xiana believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Xiana can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors. There is no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward looking statements. Accordingly, readers should not place undue reliance on forward looking statements. The forward looking statements contained in this press release are made as of the date hereof and Xiana undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Word Document File: '\\doc\emailin\20200710 105142 Attachment XIA-NR-ForbearanceAgmt-Jul10_20.DOCX' Xiana Mining Inc. 2 July 6, 2020 News Release - Continued Mining Inc. #507 - 837 West Hastings St. Vancouver, BC V6C 3N6 Telephone: (604) 685-1017 Facsimile: (604) 685-5777 NEWS RELEASE XIANA ANOUNCES FORBEARANCE AGREEMENT Vancouver, B.C., July 10, 2020, Xiana Mining Inc. (TSX-V: XIA) ("Xiana" or the "Company") announces it has entered into a forbearance agreement dated July 6, 2020 (the "Forbearance Agreement") with Bluequest Resources AG ("Bluequest") in connection with the loan advanced by Bluequest in the principal amount of US$10 million (the "Loan") pursuant to the terms of a loan agreement dated October 24, 2018, as amended on July 29, 2019 (the "Loan Agreement") 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 Agreement. 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. Since the closing of the acquisition, Xiana has quickly moved towards executing an optimisation plan aimed at reducing costs, extending mine life and improving profitability. MAP owns a total land package of 11,838 hectares in Region IV comprised of exploration and exploitation concessions. Xiana is focussed on proving up the district scale potential of MAP's properties which will continue to provide sustainable feed for the concentrator and provide sustainable and increased production growth in the medium term at low cash costs. Xiana is also engaged in the evaluation of producing and development stage mineral resource opportunities on an ongoing basis. The Company's common shares are listed on the TSX Venture Exchange under the symbol XIA. For more information about the Company please visit www.xianamining.com. ON BEHALF OF THE BOARD OF DIRECTORS OF XIANA MINING INC. Carlos Ballon Carlos Ballon, Chairman & CEO For further information please contact: Anton (Tony) Drescher Chief Financial Officer Telephone: +1 (604) 685-1017 E-mail: ajd@harbourpacific.com Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward Looking Statements This press release may contain forward looking statements within the meaning of applicable Canadian securities legislation, including without limitation statements concerning future plans and objectives or expected results in respect of mine optimization, cost reduction and profitability. Although Xiana believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Xiana can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors. There is no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward looking statements. Accordingly, readers should not place undue reliance on forward looking statements. The forward looking statements contained in this press release are made as of the date hereof and Xiana undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.