INCA ONE GOLD CORP. (TSXV: INCA.H) (FSE: SU92) provides the following general update on its CCAA proceedings and proposed new gold loan financing.

As previously reported on April 8, 2024, the Company announced the receipt of a notice of default from OCIM Precious Metals related to a missed gold loan payment. The Company was unsuccessful in its negotiations with OCIM to find an amicable solution to settle the outstanding debt that would have been in the best interests of all its stakeholders.

On June 3, 2024, Inca One sought and obtained an order for creditor protection  from the Supreme Court of British Columbia pursuant to the Companies’ Creditors Arrangement Act. The CCAA process allowed for the board of directors of the Company to remain in place and for management to maintain its responsibility for the day-to-day operations of the Company, under the general oversight of a court appointed monitor, FTI Consulting Canada Inc. The CCAA process provides protection to the Company from creditors. Nonetheless, the Company is committed to taking all steps necessary to protect and preserve the value of its business, property and the interests of all stakeholders in both Canada and Peru.

On July 9, 2024, Inca One agreed to terms for a US$25M Gold Loan facility that will be presented by Westmount Capital. Westmount is a Public and Investor Relations company based in Geneva, since 2006. Westmount coordinates European roadshows for Canadian listed micro-cap companies with high growth potential, who are undervalued and under-covered. They have developed a strong network of qualified wealth investors, high-net worth individuals, Family Offices and decision makers in Europe.

The terms of the Gold Loan presented by Westmount are as follows. The Gold Loan will mature 60 months after closing, which is expected to be on or about September 30, 2024 (the “Issuance Date“). The first US$20 million of the Gold Loan will be repaid in 16 equal quarterly installments, with the first repayment occurring 12 months from the Issuance Date and then every quarter thereafter. A final US$5 million payment will be due and payable at the end of the 60-month term. The Debentures will be priced in gold ounces at a 15% discount to the spot price of gold at the closing date. The Debenture holder will have the right to receive payment in either cash or the equivalent amount of refined gold. In addition to the discount, the Debentures will bear interest at 8% per annum payable quarterly in cash. The Gold Loan will be secured by the Company’s gold inventory and processing facilities in Peru. Interested investors can contact Westmount directly at info@westmountcapital.com.

“Our top priority at this moment is working with our advisors at Westmount Capital (westmountcapital.com) to secure the necessary financing for the US$25M Gold Loan,” stated Edward Kelly, Inca One President and CEO. With the completion of this funding arrangement the Company’s debts will be restructured and Inca One will be substantially funded. We will immediately restart operations once the funds are in place, and get back to creating value for stakeholders, shareholders, employees and local communities.”

Since the Initial Order and pursuant to the CCAA, the SCBC extended the Stay Period in favour of the Company under a Second Amended and Restated Initial Order and approved the Company to enter into an interim financing agreement with a private lender on August 2, 2024. This Debtor-In-Possession Term Loan is for the principal sum of up to US$1 million and is to be used by the Company to meet its near-term general working capital requirements including legal, restructuring, administrative and general corporate costs in connection with the CCAA proceedings and the Court approved cashflows. To date all funds have been drawn and are being deployed as indicated. For additional terms of the DIP Loan, please see the Company’s DIP Loan press release.

On August 26, 2024, on application by the Company, the SCBC approved a Claims Process Order as part of the Company’s ongoing CCAA proceedings. The Order provides for a “Claims Process” pursuant to which the Monitor will call for and adjudicate, as necessary, all claims against the Company. Copies of all Claims Process forms are available on the Monitor’s website at http://cfcanada.fticonsulting.com/incaone/.

Additionally, and pursuant to the CCAA, the SCBC further extended the Stay Period under a Second ARIO until October 7, 2024, allowing the Company the necessary time to complete the Gold Loan. The proceeds of the Gold Loan will be an important part of a Plan of Arrangement that will restructure the Company’s financial obligations to its creditors and fund the future operations and inventory of the Company.

During this CCAA period, the Company’s common shares have been suspended from trading on the TSX Venture Exchange and its secondary stock exchanges in the United States and Frankfurt Stock Exchange (the in Europe and will remain suspended pending clarification of company affairs. After the Company emerges from creditor protection and completes its application for relisting, its common shares are anticipated to be re-instated for trading on the TSXV, and OTCQB and FSE exchanges.

Since the Company was forced to enter CCAA, Management and the Board of Directors have taken all the necessary steps to reduce costs and accordingly have placed both plants on care and maintenance. The restart of operations is expected once the Company emerges from CCAA proceedings. Inca One believes it will emerge from this restructuring process financially stable and ready to take advantage of the continued strengthening gold price and precious metals environment.

About Inca One

Inca One Gold Corp is an established gold producer operating two permitted, gold mineral processing facilities in Peru. The Company possesses a combined 450 TPD permitted operating capacity at its two fully integrated plants, Chala One and Kori One, generating over US$200 million in sales from its processing operations. Inca One is led by an experienced and capable management team that has established the Company as a trusted leader in servicing permitted, Artisanal and Small-scale Gold Miners (ASGM). Peru is one of the world’s largest producers of gold, and its ASGM sector is estimated by government officials to be valued in the billions of dollars annually. Through the Company’s partnerships with the UN backed PlanetGold Program and the Swiss Better Gold Initiative, Inca One supports the sustainable development and mining practices of the ASGM sector and the responsible gold supply chain from mine to market.