Eco Oro Minerals places $22.6 million CVRs, 0.025% promissory notes

By Angela McDaniels

Tacoma, Wash., April 9 – Eco Oro Minerals Corp. completed the initial stage of the first tranche of an up to $35 million private placement.

The company will issue $13 million of contingent value rights certificates and $15 million of 0.025% promissory notes due June 30, 2028 in the first tranche and up to $7 million of 10% promissory notes due June 30, 2028 in the second tranche.

In the initial subscription of the first tranche, the company issued about $10.5 million of contingent value rights certificates and about $12.1 million of 0.025% promissory notes for aggregate gross proceeds of about $22.6 million.

The company expects to complete the $5.4 million balance of the first tranche on or about April 30, bringing the total amount of the first tranche to $28 million.

The proceeds of the initial subscription will be used for working capital needs and to repay outstanding obligations, including obligations owed by the company to Trexs Investments LLC under a $15.19 million secured term loan.

The second tranche will consist of up to $7 million of 10% interest-bearing promissory notes due June 30, 2028.

Eligible holders of the company’s previously issued contingent value rights certificates are entitled to participate in the private placement on a pro rata basis, and Trexs will backstop any portion of the private placement that eligible contingent value rights holders do not purchase.

Eligible contingent value rights holders who subscribe for their full pro rata allocation of the first tranche will be entitled to participate in the second tranche on a pro rata basis.

Eco Oro Minerals is a precious metals exploration and mining development company based in Vancouver, B.C. Its arbitration against the Republic of Colombia is its core focus.

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