First Mining Finance (FF-V) July 13, '16 announces that it has entered into a debt settlement agreement with First Majestic Silver (FR-T) (the “Creditor”) pursuant to which First Mining has agreed to settle all of the outstanding debt owed by its wholly owned subsidiary, KCP Minerals Inc. (the “Subsidiary”), to the Creditor (the “Debt Settlement”).
As of the date hereof, the approximate amount of the debt owed by the Subsidiary to the Creditor is US$1,175,000 (the “Debt”) which is payable pursuant to the terms of loan agreements between the Creditor and the Subsidiary dated November 14, 2013, March 21, 2014 and January 15, 2015.Under the terms of the Agreement, First Mining intends to settle US$500,000 (C$656,350 based on the Bank of Canada Noon Rate as of July 11, 2016) of the Debt through the issuance of 820,440 common shares of First Mining (the “Shares”) issued at a deemed price of C$0.80 per Share.The remaining Debt will be paid in cash by First Mining in twelve equal monthly installments in accordance with the terms of the Agreement.
Completion of the Debt Settlement remains subject to the approval of the TSX Venture Exchange.All Shares issued pursuant to the Debt Settlement will be subject to a four-month hold period which will expire on the date that is four months and one day from the issue date of such Shares.
ABOUT FIRST MINING FINANCE CORP.
First Mining is a mineral property holding company whose principal business activity is to acquire high quality mineral assets with a focus in the Americas.The Company currently holds a portfolio of 28 mineral assets in Canada, Mexico and the United States with a focus on gold.Ultimately, the goal is to continue to increase its portfolio of mineral assets through acquisitions that are expected to be comprised of gold, silver, copper, lead, zinc and nickel.
For further information, please contact Patrick Donnelly, President at 604-639-8854, or Derek Iwanaka, Vice President, Investor Relations at 604-639-8824, or visit our website at www.firstminingfinance.com.
ON BEHALF OF THE BOARD OF
FIRST MINING FINANCE CORP.
“Keith Neumeyer”
Keith Neumeyer
Chairman
firstminingfinance.com |
