Resource Capital Fund IV L.P. and Resource Capital Fund VI L.P. Acquire Shares of Avanti Mining Inc. pursuant to Loan Agreements
DENVER, Oct. 20, 2014 /CNW/ - Resource Capital Fund IV L.P. ("RCF IV") and Resource Capital Fund VI L.P. ("RCF VI") report that they have acquired in aggregate 18,689,731 common shares of Avanti Mining Inc. (the "Acquired Shares") in accordance with the terms of the Amended and Restated Loan Agreement dated July 12, 2013, between Avanti Mining Inc. ("Avanti"), its wholly-owned subsidiary, Avanti Kitsault Mine Ltd. ("AKM"), CEF (Capital Markets) Limited, RCF IV and RCF VI (the "Bridge Loan Agreement") as well as in accordance with the terms of the Preconstruction Loan Agreement dated December 19, 2013 between Avanti, AKM and RCF VI (collectively with the Bridge Loan Agreement, the "Loan Agreements").
Pursuant to the Loan Agreements, RCF IV and RCF VI (collectively, "RCF"), as applicable, may accept common shares of Avanti ("Common Shares") for amounts payable under the Loan Agreements. The Acquired Shares are subject to a four-month hold period and consist of:
- 3,114,955 Common Shares to RCF IV in respect of interest accrued for the period from July 1, 2014 to September 30, 2014 pursuant to the Bridge Loan Agreement;
- 3,114,955 Common Shares to RCF VI in respect of interest accrued for the period from July 1, 2014 to September 30, 2014 pursuant to the Bridge Loan Agreement; and
- 12,459,821 Common Shares to RCF VI in respect of interest accrued for the period from July 1, 2014 to September 30, 2014 pursuant to the Preconstruction Loan Agreement.
The loans made pursuant to the Loan Agreements are convertible in to Common Shares at a conversion price of C$0.07 per Common Share in respect of the Bridge Loan Agreement and C$0.055 per Common Share in respect of the Preconstruction Loan Agreement (collectively, the "Conversion Shares"). Additionally, RCF holds warrants to purchase up to 25,000,000 Common Shares, 10,000,000 of which are exercisable at C$0.135 until June 29, 2015 and 15,000,000 of which are exercisable at C$0.085 until July 12, 2016 (the "Warrants"). The Warrants were granted in conjunction with the Loan Agreements and previous lending arrangements between Avanti and RCF.
RCF IV and RCF VI are under common management by RCF Management LLC. Prior to receiving the Acquired Shares, RCF owned and controlled approximately 48.7% of the outstanding Common Shares. Including the Acquired Shares, RCF now owns and controls 277,565,583 Common Shares representing approximately 50.4% of the outstanding Common Shares. Assuming the exercise of the Warrants and the conversion of the Conversion Shares, RCF would own and control 1,646,482,466 Common Shares representing approximately 85.8% of the outstanding Common Shares on a partially diluted basis.
The Acquired Shares were acquired for investment purposes. RCF may in the future decide to invest in the Common Shares and, if so, RCF will evaluate any future investment in Avanti from time to time and may, based on such evaluation of market conditions and other circumstances, increase or decrease shareholdings in Avanti as circumstances require.
SOURCE: Resource Capital Fund IV L.P.
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and to obtain a copy of the revised early warning report filed under applicable Canadian securities laws in connection with the transactions hereunder, please see Avanti's profile on the SEDAR website www.sedar.com or contact: Resource Capital Fund IV L.P., 1400 Sixteenth Street, Suite 200, Denver, CO, 80202, Telephone: (720) 946-1444, Attn: Molly Campbell
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