TORONTO, Feb. 5, 2019 /CNW/ - Pala Investments Limited ("Pala") is pleased to announce that on February 4, 2019, it entered into and closed an amendment with Melior Resources Inc. ("Melior") to the loan agreement entered into between Melior and Pala dated August 9, 2018, as amended on November 16, 2018, to increase the principal amount of the loan facility by US$2,000,000 to US$15,750,000 (the "Amended Agreement"). In connection with the signing of the Amended Agreement, Pala was issued 750,000 common shares of Melior ("Melior Shares"). The Bonus Shares are subject to a four-month hold period in accordance with the policies of the TSX Venture Exchange. In connection with the Amended Agreement, Pala also agreed to the cancellation of 3,250,000 share purchase warrants (the "Warrants") exercisable for 3,250,000 Melior Shares at $0.095 per Melior Share.
Pala currently owns or controls, directly or indirectly, 16,460,736 Melior Shares, on a partially diluted basis, representing 51.09% of the issued and outstanding Melior Shares, based on 28,979,963 Melior Shares issued and outstanding. Following the acquisition of the Bonus Shares and the cancellation of the Warrants, Pala will have a security holding percentage of approximately 46.96%, a decrease of approximately 4.13%.
Pala will acquire these securities for investment purposes and may increase or decrease the investment in the securities of Melior depending on its evaluation of the business, prospects and financial condition of Melior, the market for Melior's securities, general economic and tax conditions and other factors.
Pala's address is 12 Castle Street, St. Helier, Jersey JE2 3RT. For further information please refer to the Early Warning Report posted on SEDAR or contact John Nagulendran at +41 41 560 9070.
Pala is an investment company focused exclusively on the mining sector with a strong track record of successful investments and value creation. Pala's team has extensive experience within the sector and seeks to assist companies in which it has long-term shareholdings by providing strategic advice and innovative solutions in development, production, turnaround and advanced exploration situations. Pala invests across all geographies and in all mining commodities as well as mining services and consumables. For more information, visit www.pala.com.
Certain statements in the press release are forward-looking statements and are prospective in nature, including statements with respect to Pala's future intentions regarding the securities of Melior that it owns. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Such forward-looking statements should therefore be construed in light of such factors, and Pala is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE Pala Investments Limited
For further information: John Nagulendran at +41 41 560 9070