EPM Mining Ventures Inc. ("EPM" or the "Company") is pleased to announce that it has completed its US$3,200,000 financing previously announced on April 7, 2014. The Company, Peak Minerals Canada Limited, Peak Minerals Inc. and Emerald Peak Mineral LLC entered into a credit agreement today with Extract Advisors LLC, an affiliate of Extract Capital LP, as agent to the lenders from time to time party thereto (the "Lenders"), providing for a US$2,500,000 loan (the "Extract Loan").
In addition, the Company, Peak Minerals Canada Limited, Peak Minerals Inc. and Emerald Peak Mineral LLC entered into a credit agreement with certain directors of the Company for a US$700,000 loan (the "Director Loan" and collectively with the Extract Loan, the "Financing"). Under the terms of the Financing, the Company provided a perfected senior security interest in substantially all of the Company's assets. The Financing will be used by the Company to fund operations and project-related activities for its Sevier Lake Playa Sulphate of Potash Project located in southwestern Utah.
Lance D'Ambrosio, Chief Executive Officer of EPM stated, "We are very pleased to have completed the Financing which provides important liquidity for the Company. It provides us the funds necessary to continue advancing the Sevier Lake Playa Sulphate of Potash Project and accomplish milestones related to our feasibility and permitting activities."
The Extract Loan has a term of 60 months. The Extract Loan will bear interest at a variable rate equal to U.S. 12-month LIBOR plus 650 basis points ("bps") per annum calculated on the outstanding principal on a 360-day/year basis. At the Company's option, it may elect to capitalize monthly interest at a rate of U.S. 12-month LIBOR plus 850 bps. LIBOR shall have a minimum of 200 bps for the purposes of interest rate calculation. The Lenders were paid $50,000 commitment fee and the agent received a $75,000 arrangement fee. Additionally, the Company issued to the Lenders 1,500,000 common shares and 750,000 common share purchase warrants (the "Extract Warrants"). The Extract Warrants have an exercise price of $0.36 per share and are exercisable until May 2, 2019, subject to adjustment in accordance with their terms. The Company also provided the Lenders with a production fee of US$1.70/tonne of production of sulphate of potash. The production fee may be repurchased at any time by the Company for a lump sum payment equal to: (a) US$250,000 if the Extract Loan is repaid in full on or before 6 months from today; (b) US$750,000 if the Extract Loan is repaid after 6 months and on or before 12 months from today; (c) US$1,000,000 if the Extract Loan is repaid after 12 months and on or before 18 months from today; and (d) US$1,500,000 if the Extract Loan is repaid after 18 months from today.
The Director Loan has a term of 24 months. Interest accrues monthly in arrears and shall be computed on a monthly basis at U.S. LIBOR (1 month) plus 175 bps ("Director's Rate") plus 850 bps per annum of the outstanding loan amount calculated on a 360-day/year basis. The Director's Rate shall have a minimum of 200 bps for calculation of the interest rate. Additionally, the Company issued the Directors an aggregate of 1,050,000 common share purchase warrants (the "Director Warrants"). The Director Warrants have an exercise price of $0.36 per share and are exercisable until May 2, 2016, subject to adjustment in accordance with their terms. For further details of the participation by the directors please refer to the press release of the Company dated April 7, 2014.
The securities issued under the Financing are subject to a hold period expiring September 3, 2014.
About EPM Mining Ventures
EPM Mining Ventures Inc. is an exploration-stage company focused on specialty fertilizers. Through Peak Minerals Inc., its indirect wholly-owned subsidiary, EPM controls directly or through agreement mineral leases on more than 124,000 acres on its Sevier Lake Playa property in Millard County, Utah. With a brine resource known to contain potassium, magnesium, sulphate, lithium and a suite of other beneficial minerals, EPM is targeting the development and production of specialty fertilizers, including SOP, through the use of a cost-effective solar evaporation process. SOP and other specialty fertilizers are used in the production of high value, chloride-sensitive crops such as fruits, vegetables, and tree nuts. With the recent completion of a Preliminary Feasibility Study, the Company is currently engaged in engineering and analysis designed to support a feasibility study, environmental permitting, and ultimately mineral production.