Eco Oro Minerals issues $6.5 million promissory notes, axes second tranche

Chicago, Dec. 6 – Eco Oro Minerals Corp. announced $6.5 million in bridge financing and a related termination of a second tranche of financing from an earlier private placement, according to a notice on Friday.

The company issued a $6.5 million demand promissory note to Trexs Investments, LLC.

The notes will bear interest at 10% and will be secured by a general security interest over all the company’s assets.

The note may be repaid at any time without penalty.

Proceeds will be used for general corporate purposes, including financing ongoing arbitration with the Republic of Colombia.

In connection with the promissory note, the $7 million second tranche of a previously announced $35 million private placement has been terminated.

The agreement was from Feb. 26 between the company and Trexs.

The company, Trexs and certain shareholders are in ongoing discussions regarding a potential financing to provide the company with additional working capital.

Trexs may use the proceeds from the repayment of the promissory note to partially finance its participation in further financing.

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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