TORONTO, Dec. 30, 2013 /CNW/ - Mangazeya Mining Ltd. ("Mangazeya" or the "Company", and formerly known as "White Tiger Gold Ltd.") (NEX:MGZ) announces that the principal amount of the bridge loan ("Bridge Loan") from Unique Goals International Inc. ("Unique") has been increased to US$40 million and the maturity date of the Bridge Loan has been extended to December 31, 2014.
Extension of Bridge Loan Maturity Date
On March 4, 2013, the Company announced that it entered into the US$1.5 million Bridge Loan from Unique. At the time of the agreement, the Bridge Loan was unsecured, scheduled to mature on April 15, 2013 and bore interest at 15% per annum. On April 26, 2013, the loan amount was increased to US$12,500,000, the maturity date was extended to June 26, 2013 and the loan bore interest at 15% per annum. On June 26, 2013, the Company and Unique amended the terms of the Bridge Loan for a second time. Under the second set of amendments to the Bridge Loan, the loan amount was increased to US$25,000,000 and the maturity date was extended to September 15, 2013. On October 3, 2013, Unique and the Company agreed to extend the maturity date of the Bridge Loan to December 31, 2013.
On December 30, 2013, Unique and the Company agreed to increase the principal amount of the Bridge Loan to US$40 million and extend the maturity date of the Bridge Loan to December 31, 2014. The amendment of the Bridge Loan is subject to NEX approval.
About Unique Goals International Ltd.
Unique Goals International Ltd. is a company beneficially owned, directly or indirectly, by Mr. Sergey Yanchukov, the Chairman and controlling shareholder of the Company. By virtue of Mr. Yanchukov's status as an insider of the Company, the provision of the Bridge Loan constitutes related party transaction under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). However, pursuant to paragraph 5.4 of MI 61-101, a formal valuation is not required as the transaction does not fall under paragraphs (a) through (g) of the definition of a related party transaction. In addition, pursuant to paragraph 5.7(f), an exemption for minority approval requirements for a related party transaction is available to the Company as the Bridge Loan is from a related party on reasonable commercial terms that are not less advantageous to the Company than if the loan or credit facility were obtained from a person dealing at arm's length with the issuer, and the loan, or each advance under the credit facility, as the case may be, is not:
(a) convertible, directly or indirectly, into equity or voting securities of the issuer or a subsidiary entity of the issuer, or otherwise participating in nature; or
(b) repayable as to principal or interest, directly or indirectly, in equity or voting securities of the issuer or a subsidiary entity of the issuer.
About Mangazeya Mining Ltd.
Mangazeya Mining Ltd. is a NEX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
- Bridge Loan