DENVER, Dec. 20, 2016 /CNW/ - Resource Capital Fund V L.P. ("RCF V") reports that on December 6, 2016 it acquired 41,909,400 common shares (the "Facility Shares") of Buffalo Coal Corp. (the "Company"), representing approximately 11.88% of the issued and outstanding common shares in the capital of the Company (the "Common Shares"). The Facility Shares were issued from treasury by the Company in settlement of interest in the amount of C$2,095,470 owing for the period beginning on April 1, 2016 and ending on June 30, 2016 on a secured convertible loan facility (the "Loan") advanced by RCF V to the Company in the aggregate principal amount of US$27 million. The conversion price for the interest was C$0.05 per Common Share.
The terms of the loan facility are set forth in the Third Amended and Restated Loan Agreement dated as of December 2, 2015 (the "Loan Agreement"), as amended by the Amendment No. 1 dated as of November 28, 2016 (the "Amendment"), a copy of which is available on the Company's profile on the SEDAR website www.sedar.com. Pursuant to the Amendment, RCF V has granted the Company an interest payment holiday from July 1, 2016 until the earlier of a) the maturity date of the Loan (the "Maturity Date"), b) the occurrence of any event which constitutes a default as defined in the Loan Agreement and c) the delivery of a notice by RCF V terminating the interest payment holiday (the "Interest Holiday Period"). During the Interest Holiday Period, interest will accrue at a rate of 1.29%. Accrued interest will be payable on the last day of the Interest Holiday Period in cash or Common Shares, in either case as provided for in the Amendment. All other terms and conditions of the Loan Agreement will continue in full force and effect and unamended.
Prior to the acquisition of the Facility Shares, RCF V owned and controlled 306,035,697 Common Shares, representing approximately 86.72% of the issued and outstanding Common Shares. Following the acquisition of the Facility Shares, RCF V owns and controls, directly or indirectly, 347,945,097 Common Shares, representing approximately 88.13% of the current issued and outstanding Common Shares.
RCF V acquired the Facility Shares for investment purposes. RCF V may from time to time acquire additional securities, dispose of some or all of the existing or additional securities or may continue to hold the securities of the Company.
The Company's head office is located at Woodlands Office Park, Portion 3rd Floor, Building 13, Cnr Woodlands and Kelvin Drive, Woodmead, Gauteng.
To obtain a copy of the early warning report filed under applicable Canadian securities laws in connection with the transactions hereunder, please see the Company's profile on the SEDAR website www.sedar.com.
About Resource Capital Fund V L.P.
RCF V is a private investment fund existing under the laws of the Cayman Islands.
SOURCE Resource Capital Fund V L.P.
For further information: and to obtain a copy of the early warning report, please contact: Resource Capital Fund V L.P., 1400 Sixteenth Street, Suite 200, Denver, CO, 80202, Telephone: (720) 946-1444, Attn: Molly Campbell