Granada Amends Convertible Notes and Enters into “Shares FOR Debt” Agreements
2875 Ave Granada
Rouyn Noranda, Québec J9Y 1Y1
Tel : 819-797-4144 / Fax: 819-792-2306
GRANADA AMENDS CONVERTIBLE NOTES AND ENTERS INTO “SHARES FOR DEBT”
AGREEMENTS
December 22, 2017. Granada Gold Mine Inc. (TSX.V: GGM) (“Granad a Gold” or the
“Company”) announces that it has reached an agreement with the two holders of its
convertible secured notes in an aggregate amount of $250,000 (t he “Notes”) to amend the
conversion terms of the Notes in light of Granada Gold’s recent s h a r e c o n s o l i d a t i o n o n a
one‐for‐eight basis. The Notes have a term of three years and bear interest at an annual
r a t e o f 8 % , p a y a b l e u p o n m a t u r i t y . A s a m e n d e d , t h e h o l d e r s o f th e N o t e s w i l l h a v e t h e
right, at their option, to convert the principal amount of the Notes into units at a price of
$0.25 per unit. Each unit will consist of one common share of G ranada Gold and one
common share purchase warrant. As amended, each warrant will give its holder the right to
acquire one additional common share of the Company at a price of $0.35 for a period of two
years from the date of issuance.
P r i o r t o t h e a m e n d m e n t , o n a p o s t ‐ c o n s o l i d a t i o n b a s i s , t h e c o n version price of the Notes
was $0.40 and the exercise price of the warrants was $0.60. The amendment of the Notes is
conditional upon the approval of the TSX Venture Exchange. If t he full principal amount of
the Notes is converted into units, Granada Gold will issue an aggregate of 1,000,000 units to
the two holders of the Notes.
Granada Gold also announces that it has reached agreements with two of its creditors in
order to convert a total of $1,128,066 of Granada Gold’s debt i nto shares. Specifically,
Granada Gold has reached an agreement with an arm’s‐length credi t o r w h o p r e v i o u s l y
loaned $600,000 to the Company. The parties have agreed that the creditor will have the
right, at his option, to convert the $600,000 loan into units a t a price of $0.25 per unit. Each
unit will consist of one common share of Granada Gold and one common share purchase
warrant. Each warrant will give its holder the right to acquire o n e a d d i t i o n a l c o m m o n
share of the Company at a price of $0.35 for a period of two years from the date of issuance.
I f t h e f u l l p r i n c i p a l a m o u n t o f t h e l o a n i s c o n v e r t e d i n t o u n i ts, Granada Gold will issue
2,400,000 units to the creditor.
Granada Gold has also reached an agreement with a non‐arm’s len gth creditor which
previously loaned $100,000 to Granada Gold. The parties have ag reed that the creditor will
have the right, at its option, to convert the $100,000 loan int o common shares of Granada
Gold at a price of $0.25 per share. The parties have also agree d that the non‐arm’s length
creditor will have the right, at its option, to convert approxi mately $428,000 owing to the
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creditor for a loan of equipment to Granada Gold into common sh ares of the Company at a
price of $0.25 per share. If the full principal amount of the l oan and the debt are converted
into units, Granada Gold will issue approximately 2,112,000 shares to the creditor.
The foregoing shares‐for‐debt agr e e m e n t s a r e c o n d i t i o n a l u p o n th e a p p r o v a l o f t h e T S X
Venture Exchange.
About Granada Gold Mine Inc.
Granada Gold Mine Inc. is developing the Granada Gold Property near Rouyn‐Noranda, Quebec. The
property includes the former Granada gold mine which produced more than 50,000 ounces of gold
in the 1930’s before a fire destroyed the surface buildings. The highly prolific Cadillac Trend, which
has been the source of more than 50 million ounces of gold produced in the past century on a line
running from Val‐d’Or to Rouyn‐Noranda, cuts through the north part of the property.
An updated Mineral Resource Estimate and revised Block Model dated June 30, 2017, with effective
date of May 16, 2017, includes the first material estimate of high‐grade gold resources discovered
in zones at depth immediately north of the LONG Bars Zone open‐pit deposit.
An initial Inferred underground resource of 10,386,500 tonnes grading 4.56 g / t A u a t a c u t ‐ o f f
grade of 1.5 g / t (1.5 m i l l i o n o z . A u ) h a s b e e n o u t l i n e d a l o n g 600 m e t e r s o f s t r i k e , n o r t h o f t h e
original near‐surface discovery at Granada. Open‐pit‐constrained resources have 625,000 ounces
Measured at 1.14 g/t Au and 182,700 ounces Indicated at 1.26 g/t Au with a cut‐off grade of 0.39
g/t Au (807,700 o u n c e s M & I a t 1.16 g/t Au) representing a major increase in Block Model
estimates for Granada vs. 2012 Block Model.
The Company has obtained all necessary permits for the initial mining phase known as the “Rolling
Start” for which stripping has already begun, and has been conducting exploration drilling in order to
expand the reported mineral resource for the property. Addition al information is available at
www.granadagoldmine.com.
“Frank J. Basa”
Frank J. Basa P. Eng.
President and Chief Executive Officer
For further information, please contact:
Frank J. Basa, P. Eng., President and CEO at 1‐819‐797‐4144 or
Wayne Cheveldayoff, Investor Relations, at 416‐710‐2410 or [email protected]
Neither the TSX Venture Exchange nor its Regulation Service Pro vider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the ade quacy or accuracy of this release. This news
release may contain forward‐looking statements including but no t limited to comments regarding the timing
and content of upcoming work pro grams, geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. F o r w a r d ‐ l o o k i n g s t a t e m e n t s a d dress future events and conditions and
therefore, involve inherent risks and uncertainties. Actual res ults may differ materially from those currently
anticipated in such statements.