Aurcana Corporation Announces Restructuring Transaction and Amendment of Senior Secured Credit Facility

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 16, 2015) - Aurcana Corporation (TSX VENTURE:AUN)(OTCQX:AUNFF) (the "Company" or "Aurcana") announces that it has entered into a Support Agreement (the "Support Agreement") with Orion Mine Finance (Master) Fund I L.P. (the "Lender") as lender under the amended and restated senior secured credit facility dated April 29, 2014 (the "Facility") to effect a restructuring transaction in connection with the debt obligations under the Facility (the "Restructuring Transaction"). The Company also announces certain amendments to the Facility.

Restructuring Transaction

The Restructuring Transaction has the following key elements:

	•	exchange of all debt obligations under the Facility for the shares and/or partners interests held directly or indirectly by Aurcana of one or more of Perforadora Aurcana S. de R.L. de C.V., Minera Aurcana S.A. de C.V., Minera La Negra, S.A. de C.V. and Real de Maconi, S.A. de C.V. (collectively, the "Mexican Subsidiaries"), to be determined by the Lender's election, resulting in the elimination of approximately US$38.7 million of principal amount of secured debt under the Facility on completion of the Restructuring Transaction;
	•	reduction of annual interest costs by approximately US$2.3 million;
	•	purchase by a newly incorporated affiliate of the Lender ("Newco") of certain equipment from Aurcana and certain of its subsidiaries for a total purchase price of US$3.5 million;
	•	payments by Newco of US$40,000 per month to Aurcana for a total period of 12 months following the completion of the Restructuring Transaction, in connection with the provision of certain consulting services by specified officers of Aurcana to Newco; and
	•	implementation of the Restructuring Transaction is expected to occur on or before December 4, 2015.

Aurcana's trade creditors, as well as its obligations to employees, are unaffected by the Restructuring Transaction and will continue to be paid or satisfied in the ordinary course of business.