Catalyst Copper Announces Receipt of $1.2 Million in Loans, Repayment of Convertible Notes, Stock Option Re-Pricing, and Adoption of Advance Notice Provisions
Trading Symbol: CCY
VANCOUVER, March 18, 2014 /CNW/ - Catalyst Copper Corp. ("Catalyst" or the "Company") (TSX VENTURE:CCY) announces that it has entered into loan agreements (the "Loan Agreements") with several private lenders (the "Lenders"), including an insider of the Company, the Radcliffe Foundation, for an aggregate amount of $1.2 Million bearing interest at a rate of 10% per annum, compounded monthly in arrears (the "Loans"). The principal amount of the Loans is due and payable on December 31, 2014. The Company has executed a security agreement in favour of the Lenders granting a first security interest in all present and future undertaking and property of the Company to the Lenders.
A portion of the proceeds of the Loans was used to repay the principal amount of CAD $300,000 plus interest on the outstanding convertible notes of the Company issued on September 24, 2013. The remaining proceeds of the Loans will be used to settle the Company's debts and for general working capital.
The Company also announces that pursuant to the Company's Stock Option Plan and having received disinterested shareholder approval, a total of 1,628,000 (post-consolidated) previously granted stock options have been re-priced to $0.05 per share, subject to TSX Venture Exchange approval. Except for the amendment of the exercise price, all original terms of the stock options will remain in effect.
The Company further reports that at the Annual General and Special Meeting held on December 10, 2013 its shareholders voted to adopt amendments to the Company's Articles to include advance notice provisions (the "Advance Notice Provisions").
The Advance Notice Provisions include, among other things, a provision that requires advance notice be given to the Company in circumstances where nomination of persons for election to the Board are made by shareholders of the Company.
The Advance Notice Provisions set a deadline by which shareholders must submit nominations (a "Notice") for the election of directors to the Company prior to any annual or special meeting of shareholders. The Advance Notice Provisions also set forth the information that a shareholder must include in the Notice to the Company, and establish the form in which the shareholder must submit the Notice for that notice to be in proper written form.
In the case of an annual meeting of shareholders, a Notice must be provided to the Company not less than 30 days and not more than 65 days prior to the date of the annual meeting. However, in the event that the annual meeting is to be held on a date that is less than 50 days after the date on which the first public announcement of the date of the annual meeting was made, a Notice must be provided to the Company not later than the close of business on the 10th day following such public announcement.
In the case of a special meeting of shareholders (which is not also an annual meeting) notice to the Company must be made not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made.
A copy of the Company's amended Articles containing the Advance Notice Provisions will be available under the Company's profile on SEDAR at www.sedar.com.
About Catalyst Copper:
Catalyst Copper Corp. is a copper and base metal company with a focus on copper mining projects in Mexico. Our current focus is the La Verde copper property, which is situated in the Sierra Madre del Sur approximately 320 kilometres west of Mexico City in Michoacán State with excellent infrastructure: roads, rail, water and power. Lazaro Cardenas, Mexico's third largest port on the Pacific Ocean is 180 km from the site. A 43-101 Technical Report dated September 30, 2012 on the La Verde property is filed on Sedar.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
Gordon Keep – Director
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, risks associated with mineral exploration and mining activities, the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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.
SOURCE Catalyst Copper Corp.For further information: please contact the Company: (604) 609-6110