VANCOUVER, Sept. 10 /CNW/ - Copper Mesa Mining Corporation ("Copper Mesa"
or the "Company") (TSX:CUX) today announced that it has negotiated at
arms-length a secured bridge loan facility from private investors for up to
US$2.3 million (the "Loan"). The Loan is due on the first anniversary of the
initial advance and bears interest at 6% per annum, payable quarterly. Each
advance under the Loan is subject to certain conditions. Subject to
shareholder and TSX approval, the terms of the Loan also provide the private
investors with the right, in the event of a future equity financing by the
Company, to convert the principal and interest outstanding and accrued on the
Loan at the time of the financing into the equity securities offered in that
financing at the same price per security that such securities are sold in the
financing. The Company has the right to pre-pay the Loan at any time prior to
its due date with no penalty.
In connection with the Loan the Company has agreed to issue one warrant
(the "Warrant") for each dollar loaned to the Company in respect of
US$2.0 million under the Loan facility, and 1.5 Warrants for each dollar
loaned to the Company in respect of US$300,000 under the Loan facility. Each
Warrant will be exercisable for a five year term from the date it is issued,
and will be convertible for one common share of the Company at an exercise
price per share equal to the volume-weighted average closing price per share
on the TSX for the 5 trading days preceding the date the Warrants are issued.
If all 2,450,000 Warrants are issued, they would be exercisable for an
aggregate of 2,450,000 shares, representing approximately 2.4% of the shares
currently issued and outstanding.
The proceeds from the Loan will be used for general working capital and
certain capital asset expenditures including funding the advancement of the
Zonia copper mine in Arizona.
Copper Mesa Mining Corporation
Copper Mesa is a mineral exploration and development company focused on
advancing into production its two key past-producing copper properties, the
Zonia and Emerald Isle Mines, in Arizona. The Company will continue to expand
its resource base through acquisition of additional properties of merit in the
For further information:
For further information: Rana S. Gill, Chief Financial Officer,
1-866-907-6047, firstname.lastname@example.org or Joanna Longo, Investor Relations,