Falco Announces Extension of its Senior Debts and Related Warrants

MONTREAL, Dec. 06, 2022 (GLOBE NEWSWIRE) -- Falco Resources Ltd. (TSX.V: FPC) (“Falco” or the “Corporation”) is pleased to announce that the Corporation has entered into binding agreements (i) with Osisko Gold Royalties Ltd (“Osisko”) in order to extend the maturity date of the Corporation’s existing convertible secured senior loan (the “Osisko Loan”) from December 31, 2022 to December 31, 2024; and (ii) with Glencore Canada Corporation (“Glencore”) in order to extend the maturity date of the Corporation’s existing senior secured convertible debenture (the “Glencore Debenture”) from April 27, 2023 to December 31, 2024.

Extension of the Maturity Date of the Osisko Loan

In consideration for the extension of the maturity date of the Osisko Loan, the Osisko Loan will also be amended (collectively with the extension of the maturity date of the Osisko Loan, the “Osisko Loan Amendments”) (i) in order for the accrued interest on the existing Osisko Loan to be capitalized such that the principal amount of the amended Osisko Loan will be approximately $20,484,195,(ii) to increase the interest rate of the Osisko Loan from 7% per annum to 8% per annum, and (iii) to reduce the conversion price of the Osisko Loan from $0.55 to $0.50 per common share of Falco (the “Common Shares”). In addition, the 10,664,324 warrants of the Corporation previously held by Osisko, each exercisable for one Common Share at an exercise price of $0.69 and expiring on November 27, 2022 will be replaced with 10,664,324 warrants of the Corporation each exercisable for one Common Share at an exercise price of $0.65 and expiring on December 31, 2024, maturing concurrently with the Osisko Loan, as amended (collectively, the “Osisko Warrants”).

Extension of the Maturity Date of the Glencore Debenture

In consideration for the extension of the maturity date of the Glencore Debenture, the Glencore Debenture will also be amended (collectively with the extension of the maturity date of the Glencore Debenture, the “Glencore Debenture Amendments”) (i) in order for the accrued interest on the existing Glencore Debenture to be capitalized such that the principal amount of the amended Glencore Debenture will be approximately $11,770,710, (ii) to increase the interest rate of the Glencore Debenture from 8% per annum to 9% per annum and (iii) to reduce the conversion price of the Glencore Debenture from $0.40 to $0.36 per Common Share. In addition, the 15,061,158 warrants of the Corporation held by Glencore, each exercisable for one Common Share at an exercise price of $0.41 and expiring on April 27, 2023 will be amended to be exercisable at an exercise price of $0.38 and expiring on December 31, 2024, maturing concurrently with the Glencore Debenture, as amended (collectively, the “Glencore Warrants”).