MONTRÉAL, Oct. 28, 2015 /CNW/ - Mercury Financing Corp. ("Mercury") announces that it has concluded an expanded credit facility (the "Transaction") with Arianne Phosphate Inc. ("Arianne"). The expanded credit facility now totals $18,750,000, which includes the extension of the current credit facilities totalling $12,500,000 (plus accrued interest), and will expire on December 31, 2017. The credit facility granted to Arianne will bear interest at an annual rate equal to 6.25% with all interest capitalized through the end of the facility. Pursuant to the Transaction, Arianne issued to Mercury 7,500,000 warrants, of which 5,000,000 warrants have an exercise price of $0.86 per common share and 2,500,000 warrants have an exercise price of $1.08 per common share.
Prior to the Transaction, Mercury owned 1,314,000 common shares of Arianne and 4,557,000 warrants, for a total of 5,871,000 common shares (assuming exercise of the 4,557,000 warrants), which represent approximately 5.88% of the common shares issued and outstanding. After completion of the Transaction, assuming all warrants owned by Mercury are exercised, Mercury would own 13,371,000 common shares of Arianne representing approximately 12.45% of Arianne's common shares that would then be issued and outstanding.
The Transaction is a private transaction that did not take place on any market or exchange.
Mercury concluded the Transaction in order to finance the general and administrative operations and other activities related to the development of Arianne's Lac à Paul project. In accordance with applicable securities laws, Mercury may, from time to time and at any time, acquire additional common shares of Arianne and/or other equity, debt or other securities or instruments (collectively, "Securities") of Arianne in the open market or otherwise, and Mercury reserves the right to dispose of any or all of its Securities in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the Securities, the whole depending on market conditions, the business and prospects of Arianne and other relevant factors.
A copy of the early warning report filed by Mercury in connection with the Transaction is available on Arianne's SEDAR profile. This news release is being issued under the early warning provisions of Canadian securities legislation.
SOURCE Mercury Financing Corp.
For further information: Mr. Paul Smith, Mercury Financing Corp., Suite 4 - 210 Governors Square, P.O. Box 32311, Grand Cayman, KY1-1209, Cayman Islands, Tel.: +1 345 945 7676