Sentient IV acquires convertible debenture of Era Resources Inc.

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES AND NOT FOR DISSEMINATION IN THE UNITED STATES/

MONTREAL, April 18, 2016 /CNW Telbec/ - Sentient Executive GP IV, Limited ("Sentient IV") announces that it has acquired control over a convertible unsecured debenture in a principal aggregate amount of US$3,000,000 (the "Debenture") issued by Era Resources Inc. ("Era Resources").  The Debenture matures on December 31, 2017 and does not bear interest.  The principal amount of the Debenture is convertible into fully paid and non-assessable common shares of Era Resources ("Common Shares") at a conversion price of Cdn.$0.45 per share.

Sentient IV has control or direction over 293,340 Common Shares (representing approximately 2.58% of the outstanding Common Shares), convertible unsecured debentures in a principal aggregate amount of US$38,426,130 (collectively, the "First Debenture"), a convertible unsecured debenture in a principal aggregate amount of US$7,500,000 (the "Second Debenture"), a convertible unsecured debenture in a principal aggregate amount of US$7,000,000 (the "Third Debenture") and the Debenture. The First Debenture, the Second Debenture and the Third Debenture also do not bear interest and the principal amount thereof is also convertible into fully paid and non-assessable Common Shares at a conversion price of Cdn.$0.45 per share. The First Debenture matures on September 30, 2016, the Second Debenture matures on June 30, 2017 and the Third Debenture matures on December 31, 2017. Assuming the conversion in full of the principal amount of the Debenture, the First Debenture, the Second Debenture and the Third Debenture, Sentient IV would acquire control over a maximum of 139,461,129 Common Shares (including the 293,340 Common Shares referred to above).  These combined holdings would represent approximately 92.64% of the outstanding Common Shares, calculated on a partially diluted basis assuming the full conversion of the Debenture, the First Debenture, the Second Debenture and the Third Debenture only.

Sentient IV acquired the Debenture for investment purposes only and not with a view to materially affecting control of Era Resources.

Sentient IV relied under section 2.3 of National Instrument 45-106 – Prospectus and Registration Exemptions for the purchase of the Debenture as Sentient IV is an "accredited investor" under that Instrument.

 

SOURCE Sentient Executive GP IV, Limited

For further information: For further information or to obtain a copy of the Early Warning Report filed by Sentient IV, please contact Sue Bjuro at (345) 946-0933.


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