Mineworx Announces Financings - Seite 2

The holders of the Debentures shall be entitled to convert the Principal Amount (excluding accrued but unpaid Interest), in whole or in part, into common shares of the Corporation (“Common Shares”) at a conversion price (“Conversion Price”) of $0.10 per Common Share.

The Corporation shall have the right, upon 30 days prior written notice, to redeem all amounts outstanding under the Debentures at any time prior to the Maturity Date, without the requirement to pay a pre-payment penalty or other amount in respect of such right of redemption.  In the event that the Corporation elects to exercise its right of redemption, each Debenture holder shall have a right to convert the Debenture.

Commencing on the Closing Date, interest (“Interest”) shall accrue on the outstanding balance of the Principal Amount at the rate of 12% per annum calculated annually but not in advance. Interest shall be due and payable on the earlier of: (i) the Maturity Date; and (ii) in the event of conversion prior to the Maturity Date of the entire Principal Amount, 30 days following the conversion date.

Each Warrant will entitle the holder to purchase one Common Share of the Corporation at an exercise price of $0.12 per Common Share for a period of twenty-four months from the Closing.  The Warrants shall have an acceleration provision whereby in the event that the closing price of the common shares listed on the TSX Venture Exchange have traded at $0.25 or higher for a minimum of 10 consecutive trading days (whether or not trading occurs on all such days), the Corporation shall have the right to accelerate the expiry date of the Warrants to 30 days from the date of issuance of a news release by the Corporation announcing the accelerated expiry date.

The Closing of the Offering is expected to occur on or about June 30, 2020 (the “Closing”).

In connection with the Offering, the Company may pay to eligible parties cash finder’s fees of up to 7% of the gross proceeds received and may issue finder’s warrants (the “Finder’s Warrants”).  For the Private Placement each Finder’s Warrant will allow for the purchase of a unit for a period of 2 years from the closing date at $0.075 which consists of a common share and a warrant for a common share exercisable at $0.10 for a period of 4 years from the Closing. For the Debenture Offering, each Finder’s Warrant will allow for the purchase of a common share at a price of $0.12 for a period of two years after the Closing.