$200,000 or a term of 180 days. Under the terms of the loan agreement, lenders will be paid 10% interest and
NEWS RELEASE NR#15-03
LOAN TRANSACTION
VANCOUVER, British Columbia, May 19, 2015 – Fjordland Exploration Inc. (TSX-V: FEX) reports that the Board of Directors has authorized management to proceed with a loan arrangement whereby the Company will borrow $200,000 or a term of 180 days. Under the terms of the loan agreement, lenders will be paid 10% interest and will receive a 20% bonus, payable in shares of the Company at a deemed price of $0.05 per share. The proceeds will be used to continue exploration work on the Sarah Lake property, Newfoundland and Labrador, retirement of outstanding debt of $100,000 plus interest and for general working capital. This transaction is subject to the approval of the TSX Venture Exchange.
The Loan shall constitute a related party transaction within the meaning of Multilateral Instrument 61-101. Management considers the Loan to be advantageous as it provides additional liquidity and financial flexibility to the Company and management also considers the terms of the Loan to be reasonable in the context of the market. The Loan was reviewed and approved by the disinterested members of the Company's board of directors. The material change report in relation to the Loan will be filed less than 21 days before the expected closing date of the Loan as the Company wishes to complete the Loan as soon as commercially feasible after all required approvals are obtained. The Loan shall be exempt from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 as it represents less than 25% of the Company's market capitalization.
About Fjordland Exploration Inc.
Fjordland Exploration Inc. is a mineral exploration company historically focused on the discovery of copper and gold deposits in British Columbia. Fjordland’s principal exploration focus is currently nickel-cobalt deposits in Labrador. Fjordland’s shares trade on the TSX Venture Exchange under the symbol “FEX”. For further information visit Fjordland’s website at www.fjordlandex.com
On behalf of the Board of Directors,
Janice Davies Corporate Secretary
For further information, please call:
FJORDLAND EXPLORATION INC.
Richard C. Atkinson, President and CEO 1-604-805-3232 [email protected] www.fjordlandex.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements