DENVER, April 29, 2016 /CNW/ - Resource Capital Fund VI L.P. ("RCF VI") reports that it has been issued 77,817,126 common shares (the "Acquired Shares") of Alloycorp Mining Inc. ("Alloycorp") in satisfaction of accrued and unpaid interest on the loan facility dated as of November 14, 2014, as amended, between Alloycorp, its wholly-owned subsidiary, Avanti Kitsault Mine Ltd. ("AKM") and RCF VI (the "Loan Agreement").
In accordance with an amendment to the Loan Agreement, RCF VI agreed to accept, and Alloycorp agreed to issue, common shares of Alloycorp ("Common Shares") in payment of accrued and unpaid interest under the Loan Agreement to and including April 26, 2016. The Acquired Shares are subject to a four-month hold period. The number of Acquired Shares was determined by dividing (i) the amount of the accrued and unpaid interest at April 26, 2016 by (ii) the volume weighted average price of the Common Shares on the twenty trading days prior to announcement of the transaction by Alloycorp on April 22, 2016 (multiplied by ten to reflect the share consolidation that was effected by Alloycorp on April 27, 2016).
RCF VI and Resource Capital Fund IV L.P. are under common management by RCF Management LLC and are referred to herein together as "RCF". Prior to receiving the Acquired Shares, RCF owned and controlled approximately 63.1% of the outstanding Common Shares. Including the Acquired Shares, RCF now owns and controls 124,548,993 Common Shares representing approximately 82.0% of the outstanding Common Shares.
Certain loans made pursuant to other loan agreements with RCF are convertible into Common Shares at a post-consolidation conversion price of C$0.70 per Common Share and C$0.55 per Common Share. Additionally, RCF holds warrants to purchase up to 15,000,000 Common Shares which are exercisable post-consolidation at C$0.85 until July 12, 2016. If these loans are converted or warrants are exercised, RCF may further increase its ownership in the outstanding Common Shares.
The Acquired Shares were acquired for investment purposes. RCF may in the future decide to invest in the Common Shares and, if so, RCF will evaluate any future investment in Alloycorp from time to time and may, based on such evaluation of market conditions and other circumstances, increase or decrease shareholdings in Alloycorp as circumstances require.
For further information and to obtain a copy of the revised early warning report filed under applicable Canadian securities laws in connection with the transactions hereunder, please see Alloycorp's profile on the SEDAR website www.sedar.com or contact:
SOURCE DWPV Services Limited Partnership
For further information: Resource Capital Fund IV L.P., 1400 Sixteenth Street, Suite 200, Denver, CO, 80202, Telephone: (720) 946-1444, Attn: Molly Campbell; Resource Capital Fund VI L.P., 1400 Sixteenth Street, Suite 200, Denver, CO, 80202, Telephone: (720) 946-1444, Attn: Molly Campbell