The company on Friday announced it had reached an agreement to immediately retire the $1,075,000 balance of the $1,575,000 convertible debenture which was issued to Halo Labs Inc in October 2019 in consideration of the acquisition of the 80% interest in the project
To retire the obligations under the debenture, Aftermath Silver said it will issue 4 million common shares to Halo at the conversion price of $0.20.
The junior miner is buying Halo’s shares in the Chilean holding company, Minera Cachinal SA, representing 80% ownership of the project. SSR Mining Inc (NASDAQ:SSRM) holds the remaining 20% interest.
“I’d like to thank Halo Labs for allowing us to trigger retirement of the debenture early,’ said Ralph Rushton, president of Aftermath Silver in a statement.
“Given the current precious metals market, the removal of the upcoming cash payment obligations under the debenture will allow Aftermath Silver to direct more of its treasury into the technical programs in Chile, as and when (coronavirus) COVID restrictions are lifted,” he added.
In other company news, Aftermath Silver said that it has received proceeds of $159,150 to date related to the recent exercise of 1,326,250 warrants at $0.12 each.
The company also noted that completion of the updated NI 43-101 Technical Report on Cachinal continues to be delayed due to COVID-19 travel restrictions in Chile.
Aftermath silver shares in Toronto added 9.62% to C$0.28 each.
—Updates for share price—
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Published at Mon, 18 May 2020 15:04:00 +0000-Aftermath Silver completes acquisition of 80% stake in Cachinal silver-gold project after early debenture retirement