TORONTO, April 7, 2016 /CNW/ - (TSXV: GMN) GobiMin Inc. (the "Company" or "GobiMin") announce that its subsidiary, GobiMin Silver Limited ("GSL"), has entered into a loan agreement with China Precision Material Limited ("CPML"), a non-arm's length party, with respect to a USD4,000,000 revolving, term loan facility bearing an interest rate of 3.5% per annum in favor of CPML (the "Loan"). GSL owns a 38.30% indirect equity interest in CPML, which engages in the trading of metals, predominately silver, in Hong Kong.
The Loan will have an initial 6-month term ending on October 6, 2016 and may be extended by mutual consent. GobiMin may demand repayment of principal and interest anytime with 3 days' notice.
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.
Closing 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.
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