Euro Sun Mining Announces Receipt of Waivers and Closing of First Tranche of Offering

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TORONTO, Aug. 10, 2023 (GLOBE NEWSWIRE) -- Euro Sun Mining Inc., (TSX: ESM) (“Euro Sun” or the “Company”) is pleased to announce that it has signed an agreement with Lind Global Fund II, LP, an investment entity managed by The Lind Partners, a New York based institutional fund manager (together, “Lind”) to issue 12,500,000 warrants of the Company (the “Warrants”) in exchange for Lind’s waiver of its (a) ongoing conversion rights under the two convertible security funding agreements (together, the “CSFAs”) and (b) its right to receive common shares of the Company (the “Common Shares”) should the Company elect to buy-back the amounts outstanding under the CSFA, in each case for the period between July 31, 2023 to August 28, 2023 (together, the “Waivers”).

Each Warrant will entitle Lind to acquire one additional Common Share of the Company at an exercise price of C$0.05 per Common Share until August 9, 2026. Furthermore, the Warrants may not be exercised until December 9, 2026, unless the closing price of the Common Shares is $0.075 or higher or there is a change of control of the Company. The exercise price of the Warrant is the same as the price per Common Share in the offering of Common Shares announced by the Company on July 25, 2023 (the “Offering”).

The Company intends to use the proceeds of the Offering to repay the outstanding convertible securities. The Company appreciates Lind’s cooperation to grant the Waivers and believes the Waivers are in the best interest of shareholders as it enables the Company to repay the outstanding amounts under the CSFAs, in full, in cash and reduce potential dilution to shareholders.

First Tranche Closing

The Company is also pleased to announce that it has closed its first tranche of the Offering for gross proceeds of C$150,000.00, subject to the approval of the Toronto Stock Exchange (the “First Tranche”).

Pursuant to the First Tranche, the Company issued 3,000,000 Common Shares at a price of C$0.05 per Common Share. No finder fees were paid in connection with the Closing of the First Tranche. The Common Shares issued under the First Tranche are subject to a statutory hold period ending four months and one day from the closing date of the First Tranche. The Company anticipates closing additional tranches under the Offering.