Mr. David Vincent reports
CONVERTIBLE DEBENTURES FORBEARANCE AGREEMENT
Canamex Gold Corp. has provided an update regarding the status of its secured
convertible debentures issued by the company on Oct. 25, 2016, and Dec.
23, 2016, and which matured on Oct. 25, 2019, and Dec. 23, 2019,
A forbearance agreement dated Dec.
21, 2020, has been executed by the company and Concept Capital Management Ltd.,
Sinigual Sociedad SA and Golden Capital Consulting Ltd.
The majority debenture holders have agreed to further forbear from exercising their
rights and remedies under the debentures and related security documents arising from the delays by the company in
paying interest and repaying the principal of the debentures, provided that the
outstanding obligations under the debentures are repaid on or before March 31,
If the company fails to make full payment, including any agreed penalties, on or before
March 31, 2021, then the majority debenture holders shall be entitled in their sole
discretion to enforce their rights under the loan documents.
Gold forward sale -- update
On July 15, 2020, the company provided an update regarding the status of its Gold
forward sale agreement with MetalStream Ltd., originally announced Jan. 27, 2020, and an extension announced April 23, 2020.
The company advised that the initial first tranche payment was increased to $5.5-million (U.S.) and was delayed due to COVID-19-related banking and logistic delays,
experienced by MetalStream. Despite these COVID-19-related delays, the company
and MetalStream remain fully committed to the agreement; and the first tranche
payment is expected to be completed before March 31, 2021.
The subsequent second and third tranches payable under the agreement were also
amended as follows:
- Second tranche payment of $5-million (U.S.) was increased to $5.5-million (U.S.); and
Third tranche payment of $25-million (U.S.) was reduced to $24-million (U.S.).
The company proposes to use the proceeds from its agreement with
MetalStream to settle the interest and any penalties, and repaying the principal of the
debentures, on or before March 31, 2021.
About Canamex Gold Corp.
Canamex is a public listed company registered in British Columbia, Canada, trading
on the Canadian Securities Exchange and is engaged in predevelopment
of the Bruner gold and silver project in the prolific gold jurisdiction of Nye county,
Nevada. The region is home to several producing and past-producing mines along the
Walker Lane trend. Canamex completed a positive preliminary economic assessment
on the Bruner project in 2016. Based on additional drilling conducted on the
property, the company completed an updated PEA in 2018, which increased the
resources and improved the economics of the project.
The PEA is based primarily on indicated resources, but also included about 10 per cent
inferred resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be categorized as
mineral reserves, and there is no certainty that the preliminary economic assessment
will be realized.
Canamex is planning to move the Bruner project forward into permitting and
development using the proceeds from a gold stream forward sale to MetalStream
Projects that proceed to construction based solely upon a PEA have a higher degree
of risk associated with them than projects that have gone through a feasibility study of
mineral reserves. Canamex is not basing its decision to proceed to permitting and
construction on a feasibility study. Feasibility-level engineering will proceed in parallel
with project permitting such that both should be completed simultaneously to allow
project construction to commence after feasibility-level engineering has been
We seek Safe Harbor.
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