TORONTO, Oct. 6, 2016 /CNW/ - (TSXV: GMN) GobiMin Inc. (the "Company" or "GobiMin") announces that it agrees to extend the repayment term from October 6, 2016 to April 6, 2017 with respect to a USD4,000,000 revolving, term loan facility bearing an interest rate of 3.5% per annum (the "Loan") in favor of China Precision Material Limited ("CPML"), a non-arm's length party, under the loan agreement dated April 7, 2016. All the other terms of the loan agreement remain unchanged. GobiMin may demand repayment of principal and interest anytime with a 3 days' notice.
The outstanding principal amount of the Loan is currently USD3,500,000.
GobiMin owns a 10.06% indirect equity interest in CPML which engages in the trading of metals, predominately silver, in Hong Kong.
The Loan is considered a "related party transaction" under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on Sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, for exemptions from the formal valuation and minority approval requirements under MI 61-101, as the amount of the Loan to CPML does not exceed 25% of the Corporation's market capitalization.
Extension of the Loan is subject to receipt of all applicable regulatory and exchange approvals.
"Neither 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."
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SOURCE GobiMin Inc.
For further information: Felipe Tan, Chief Executive Officer, Tel: (852) 3586-6500, Email: firstname.lastname@example.org