Gran Colombia Gold Announces Changes to Restructuring Proposal for the Gold-Linked and Silver-Linked Notes and New Date for Meetings - Seite 2

Key terms of the Silver Notes Exchange and 2022 Debentures under the Revised Arrangement have been revised to include:

2. The aggregate principal amount will be the sum of US$78.6 million and the accrued and unpaid interest on the Silver Notes that will be added to the principal amount of the Silver Notes under the Revised Arrangement, rounded down to the nearest whole US$1.00.
3. Holders will have the option to convert some or all of their Silver Notes on the effective date by the issuance of freely tradeable common shares of the Company at a conversion price of US$0.13 per common share, representing approximately 7,692 common shares for each US$1,000 Silver Note.
4. The 2022 Debentures will be issuable only in denominations of US$1.00 and integral multiples thereof.
5. The 2022 Debentures, at the option of the Company, will bear either (a) cash interest at a rate of 1.0% per annum or (b) PIK interest at a rate of 2.0% per annum, in either case payable monthly in arrears on the last business day of each month, commencing in the first full calendar month following the effective date. For further certainty, the Company will be able to elect between either a cash interest payment or a PIK interest payment on a monthly basis. PIK interest will be added to the principal amount of the 2022 Debentures outstanding.
6. The maturity date will be August 31, 2022.
7. The 2022 Debentures will be convertible, at the option of the holder at any time prior to the close of business on the earlier of the maturity date and the Conversion Date, at a conversion price of US$0.25 per common share (the "2022 Conversion Price") (before giving effect to any PIK interest or payment of interest in shares, this represents a conversion rate of 4,000 common shares per US$1,000 principal amount of 2022 Debentures). The 2022 Conversion Price shall be subject to standard provisions providing for adjustments upon the occurrence of certain corporate events.
8. The 2022 Debentures may be redeemed for cash in whole or in part from time to time at the option of the Company on not more than 60 days and not less than 30 days prior notice, at a price equal to their principal amount (including any PIK 2022 Debentures issued) plus accrued and unpaid interest.
9. On maturity, provided that (a) no event of default shall have occurred and be continuing and (b) the value of the Company's common shares traded during the 20 consecutive trading days ending 25 trading days prior to August 31, 2022 is equal to or greater than three times the principal amount of the 2022 Debentures outstanding at the beginning of such 20-day period, calculated using the Bank of Canada noon exchange rate on such date, the Company may, at its option, on not less than 30 days prior notice and subject to regulatory approval, elect to satisfy its obligation to repay principal (including any PIK 2022 Debentures issued) plus accrued and unpaid interest amounts of the 2022 Debentures by issuing and delivering that number of freely tradeable common shares obtained by dividing the principal plus accrued and unpaid interest amounts of the outstanding 2022 Debentures by 95% of the volume weighted average trading price of the common shares on the TSX for the 20 consecutive trading days ending five trading days preceding the maturity date.
10. The 2022 Debentures will be unsecured indebtedness of the Company. The covenants and events of default are also as set out in the Silver Notes indenture.
11. In addition to the right of the Company to redeem the 2022 Debentures, as set out above, the Company will also have the right at any time to purchase the 2022 Debentures in the market, by tender, or by private contract, at any price, which, for greater certainty, may be below par.

In addition to the foregoing, the Company covenants that once the 2020 Debentures have been fully retired, a minimum of 75% of its Excess Cash Flow, as defined above, will be paid into a sinking fund, which will be applied towards repayment, repurchase (in the market, by tender, or by private contract, at any price, which, for greater certainty, may be below par) or other redemption, as the Company elects, of the 2022 Debentures.