Toachi Mining Announces Closing of C$1,500,000 Convertible Debenture Financing
Toachi Mining Inc., (“Toachi” or the “Company”) (TSX-V: TIM) (OTCQB: TIMGF) is pleased to announce the successful closing of its previously announced strategic non-brokered private placement with a combination of insiders and high net worth investors (the “Financing Group”), for an aggregate principal amount of C$1,500,000 convertible debentures (the “Debentures”) of Toachi (the “Financing”).
Each Debenture bears interest at an annual rate of 10.85% and may be converted into a maximum of 12,500,000 common shares of the Company at a conversion price of $0.12 per share at any time prior to maturity. Maturity is 12 months following the closing date. No transaction or finder’s fees is paid in conjunction with the issuance. The Debentures and its underlying common shares are subject to resale restrictions of four month and one day from the closing and among other things, receipt by Toachi of all necessary regulatory approvals, including the TSX Venture Exchange.
The net proceeds from the Financing will be used to accelerate Toachi’s option payment to earn a controlling interest in the La Plata Project in Ecuador, advance engineering of the Toachi’s La Plata Project as well as for working capital and general corporate purposes.
Over 70% of the Financing has been subscribed by insiders of the Company, including members of the Board of Directors. A Material Change Report will be filed outlining the exemptions the Company will rely upon as described in policy NI 61-101.
The Financing and all of their underlying securities will be issued pursuant to exemptions from the prospectus requirements of applicable securities legislation. The Debenture offering will thus be solely addressed to “accredited investors”, to subscribers which are not individuals and each subscribing for at least $150,000 or other prospectus exemptions in each of the Provinces of Canada and to eligible purchasers residing in jurisdictions other than Canada as agreed to by Toachi provided that no prospectus filing or comparable obligation arises and Toachi does not thereafter become subject to continuous disclosure obligations in such jurisdictions.
On behalf of Alain Bureau and the Toachi Mining team, we welcome you to attend the 2019 Investor Exchange at PDAC, Booth #3017. It is being held at the Metro Toronto Convention Centre, South Building from Sunday March 3 to Wednesday March 6, 2019.
Toachi and its Ecuador mining peers, along with members of the Ecuadorian government will host Ecuador Day on Sunday March 3rd, 2019. Toachi will also be presenting during the event on the advances of its La Plata project. Further details will be available during the upcoming weeks on our website at www.toachimining.com.