Braveheart Resources Inc. Eliminates $2.4 Million in Debt
Braveheart Resources Inc. Eliminates $2.4
Million in Debt
Calgary, Alberta--(Newsfile Corp. - August 14, 2020) -
Braveheart Resources Inc.
(TSXV: BHT)
(OTCQB: RIINF)
("
Braveheart
" or the "
Company
") hereby announces that it has reduced its debt by
$2.4 million through the early conversion of 40% of its $6.0 million Series A Convertible Debenture (the
"Debenture") into shares of the Company.
Effectively the Company will issue 12 million shares of
Braveheart at a conversion price of $0.20 per share to 2166687 Alberta Ltd. ("2166687") as resolution
of a portion of its convertible debt.
2166687 is a holding entity for approximately 90 underlying note
holders.
Previously, on March 11, 2020, the Company announced the restructuring of its Debenture that was
originally negotiated with CuVeras LLC and the Secured Debenture Holders of CuVeras, operating
through 2166687.
Under the restructured agreement with 2166687, the maturity date of the original
Debenture was extended for an additional two years and will now mature on January 21, 2024.
The
Debenture will continue to accrue annual interest of 1% and 2% respectively in the second and third year
of the Debenture.
The Debenture will accrue annual interest of 5% for each of the fourth and fifth years of
the Debenture.
The conversion price was amended such that immediately, up to 40% of the principal
amount of the Debenture can be converted into shares of Braveheart at a price of $0.20 per share.
After
48 months from the original date of issuance, or January 21, 2023, the balance of the principal amount of
the Debenture can be converted into shares of Braveheart at a price of $0.30 per share.
If the remaining
60% of the Debenture is fully converted into common shares of Braveheart, an additional 12,000,000
common shares will be issuable to the underlying note holders of 2166687. The amendments to the
original Debenture have been approved by the TSXV Exchange.
Peter Lacey, a Director of 2166687, stated, "We are pleased with the progress that Braveheart is
making towards the restart of the Bull River Mine project.
Many of our note holders have been involved
with the project from as early as 2011.
The early conversion of a portion of the Debenture reflects our
belief that Braveheart is undervalued in the current market and the Company has the potential for share
price appreciation through the elimination of debt and further advancement of the project."
Ian Berzins, President and CEO, commented, "I am extremely pleased that we have been able to work
closely with our Debenture note holders to restructure the original Debenture and now agree to an early
conversion of 40% of the Debenture, thereby reducing our debt by $2.4 million.
The fact that the note
holders have committed to an early conversion at a price that is above our current trading levels,
demonstrates their strong support for the project and their confidence in management."
About Braveheart Resources Inc.
Braveheart is a Canadian-based junior mining company focused on building shareholder value through
exploration and development in the favourable and proven mining jurisdictions of the East and West
Kootenays of British Columbia. Braveheart's main asset is the Bull River Mine project which has a
current mineral resource containing copper, gold and silver. The property is fully developed with 21,000
metres of underground developments in terms of ramps, raises and drifting on mineralized structures on
seven levels. The surface infrastructure includes a 750 tonne per day conventional mill with adjoining
crushing facilities as well as offices and mine maintenance facilities. The property is connected to grid
power and there is year-round access to the site by paved and all-weather roads.
Contact Information
Braveheart Resources Inc.
Ian Berzins
President & Chief Executive Officer
403-512-8202
Website:
www.braveheartresources.com
Caution Regarding Forward-Looking Information
This news release includes certain information that may constitute "forward-looking information" under
applicable Canadian securities legislation. Forward-looking information includes, but is not limited to,
statements about strategic plans, future work programs and objectives and expected results from such
work programs. Forward-looking information necessarily involve known and unknown risks, including,
without limitation, risks associated with general economic conditions; inability to access sufficient
capital from internal and external sources, and/or inability to access sufficient capital on favourable
terms; and other risks.
Forward-looking information is necessarily based upon a number of estimates and assumptions that,
while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors
which may cause the actual results and future events to differ materially from those expressed or
implied by such forward-looking information and the risks identified in the Company's continuous
disclosure record. There can be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on forward-looking information. All forward-
looking information contained in this news release is given as of the date hereof and is based upon
the opinions and estimates of management and information available to management as at the date
hereof. The Company disclaims any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events or otherwise, except as required by
law.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new
release.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/61736