To secure its interest in the Koper Lake-McFaulds claims, KWG will issue to Fancamp a secured convertible promissory note in the principal amount of C$34.5 million bearing interest at 6% and matures in four years. It will also issue warrants to purchase a number of KWG shares equal in value to about half of the principal amount.
Fancamp will also receive a 2% net smelter return royalty on any direct or indirect interest in the mining claims held by KWG.
“The proposed transaction simplifies some of the existing joint venture arrangements and will enable KWG to be the clear leader in the advancement and development of the mining claims and, in due course, to help finance this initiative,” Rajesh Sharma, president and CEO of Fancamp, commented.
“The proposed consideration package allows Fancamp to monetize its investment into KWG with marketable securities while providing KWG with an immediate cash injection that will permit…
