GB Minerals Ltd. (TSXV: GBL) ispleased to announce that it has received further advances of C$700,000 from Alpha Infrastructure LLC and C$1,400,000 from A.B. Aterra Resources Limited. Both Alpha and Aterra are significant shareholders of the Company. The advances are evidenced by promissory notes that are pre-payable, in whole or in part, at any time, bearing interest at a rate of 15% per year and maturing on November 30, 2015. The Company intends to repay the advances through other financings and will use the proceeds of the advances in the interim for expenses and development of the Company’s Farim phosphate mineral property, to meet the Company’s financial obligations and operational commitments and funding litigation as against GBM Minerals Engineering Consultants Limited.
Alpha and Aterra are each a ‘related party’ to the Company under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions by virtue of their respective shareholdings being in excess of 10% of the Company’s issued and outstanding share capital. Accordingly, the issue of the Promissory Notes is a ‘related party transaction’ under MI 61-101. This transaction is exempt from (i) the formal valuation requirements under Section 5.4 of MI 61-101 pursuant to Subsections 5.5(g) of MI 61-101 and (ii) from the minority approval requirements under Section 5.6 of MI 61-101 pursuant to Subsection 5.7(1)(e) of MI 61-101 because the board of directors of the Company, acting in good faith, has determined, and at least two-thirds of the Company’s independent directors, acting in good faith, have determined, that the Company is in serious financial difficulty, that the issue of the Promissory Notes is designed to improve the Company’s financial position and that the terms of the Promissory Notes are reasonable in the Company’s circumstances.
Luis da Silva, President and Chief Executive Officer of the Company, comments:
‘Whilst the Company nears the completion of the study phase for the Farim phosphate project, the continued support from our major shareholders brings us a step closer to re-configuring the viability of this world class asset. We look forward to updating shareholders in the near future with the results of the further work performed since September 2014.’
ABOUT GB MINERALS LTD.
GB Minerals Ltd. is a Canadian mining exploration and development company focused on advancing its world class, high quality Farim Project. The Company has already been granted a production license in relation to the Farim Project which is the subject of a NI 43-101 study entitled ‘Feasibility of the Beneficiated Rock Concentrate of the Farim Phosphate Project, Guinea-Bissau an NI 43-101 Report’ dated December 19, 2012 and filed under the Company’s profile on SEDAR at www.sedar.com on January 17, 2013.
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