/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
MONTREAL, June 18, 2016 /CNW/ - Cyprium Mining Corporation
(TSXV: CUG) ("Cyprium" or the "Company") is
pleased to provide an update on recent financing activities
totaling $1,387,000. These financing
activities consist in the successful extension of the maturity date
of various loans totaling US $813,750
(the "Loan Extensions"), certain debt conversions into
equity for $152,500 (the "Debt
Conversions") and a private placement of up to $195,000 (the "Offering").
The Offering, which the Company intends to complete on or before
June 30th, 2016, will consists of up
to 3,000,000 units (the "Units") at a price of $0.065 per Unit for gross proceeds of up to
$195,000. Each Unit will be comprised
of one common share in the capital of the Company ("Common
Share") and one share purchase warrant of the Company
("Warrant"). Each Warrant will be exercisable into one
Common Share at an exercise price of $0.10, expiring two years from the date of
issuance. The net proceeds from the Offering will be used to fund
the continued activities at the Potosi nine located in Northern Mexico.
As part of the Offering a director of the Company (the
"Insider") together with other arm's length shareholders of
the Company have arranged for the sale of up to 839,000 Common
Shares of their personal holdings at a price of $0.075 per Common Share through the facilities of
the TSX Venture Exchange (the "Swap"). The proceeds from the
Swap will be used to facilitate such Insider and shareholders
subscription for their participation in the Offering.
The Company has entered into debt settlement agreements with
various creditors who are not insiders of the Company to settle up
to $130,000 of indebtedness by the
issuance of up to two million Units of the Company (the "Units
for Debt"). In addition, Mr. Carlos
Arzola, a director of Cyprium who resides in Mexico, has requested the Company to pay
outstanding director fees in the amount of $12,500 through the issuance of 192,308 Common
Shares (the "Arzola Shares").
The Company has also renegotiated three loans with arms-length
lenders for a total amount US $313,750 and these loan have been extended by a
period of twelve months beyond their original maturity dates.
Subject to regulatory approval, the Company will issue 1,201,781
Common Shares (the "Bonus Shares") and 1,884,000 common
share purchase warrants ("Bonus Warrants") as bonuses for
the extension of the original maturity dates. Each Bonus Warrant
will entitle the holder to purchase one common share at a price of
$0.07 per common share before
April 20th, 2018. Finally,
the Company has extended the maturity date for a loan in the amount
of US $500,000 from May 5th, 2016 to August 7th, 2016. As consideration for
the extension, the Company will issue, subject to regulatory
approval, one million common share purchase warrants (the
"Extension Warrants"). Each Extension Warrant will entitle
the holder to purchase one common share at a price of $0.10 per common share before May 5th, 2018.
Closing of the Offering, Debt Conversions, Loan Extensions and
the issuance of the Common Shares, the Warrants, the Bonus
Warrants, the Extension Warrants, the Units for Debt and the Arzola
Shares is subject to certain conditions including, but not limited
to, the receipt of all necessary approvals, including the approval
of the TSX Venture Exchange Inc. Pursuant to applicable securities
laws, all securities issued pursuant to the above-mentioned
transactions will be subject to a hold period of four months plus
one day following the closing of the Debt Conversion.
About Cyprium Mining Corporation
For the description of Cyprium Mining's business and the
Company's Forward Looking Statement Disclaimer which form an
integral part of this news release please visit our website at:
http://www.cypriummining.com/en/investors/disclaimers
Neither TSX Venture Exchange Inc. nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange Inc.) accepts responsibility for the adequacy or
accuracy of this release.
This news release contains "forward-looking information" (within
the meaning of applicable Canadian securities laws) and "forward
-looking statements" (within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995). Such statements or
information are identified with words such as "anticipate",
"believe", "expect", "plan", "intend", "potential", "estimate",
"propose", "project", "outlook", "foresee" or similar words
suggesting future outcomes or statements regarding an outlook. Such
statements include, among others, those concerning the Company's
anticipated plans for developments of the Company and its mining
projects.
Such forward-looking information or statements are based on a
number of risks, uncertainties and assumptions which may cause
actual results or other expectations to differ materially from
those anticipated and which may prove to be incorrect. Assumptions
have been made regarding, among other things, management's
expectations regarding future growth, plans for and completion of
projects by Company's third party relationships, availability of
capital, and the necessity to incur capital and other expenditures.
Actual results could differ materially due to a number of factors,
including, without limitation, operational risks in the completion
of Company's anticipated projects, delays or changes in plans with
respect to the development of Company's anticipated projects by
Company's third party relationships, risks affecting the ability to
develop projects, risks inherent in operating in foreign
jurisdictions, the ability to attract key personnel, and the
inability to raise additional capital. No assurances can be given
that the efforts by the Company will be successful. Additional
assumptions and risks are set out in detail in the Company's
MD&A, available on SEDAR at www.sedar.com.
Although the Company believes that the expectations reflected in
the forward-looking information or statements are reasonable,
prospective investors in the Company's securities should not place
undue reliance on forward-looking statements because the Company
can provide no assurance that such expectations will prove to be
correct. Forward-looking information and statements contained in
this news release are as of the date of this news release and the
Company assumes no obligation to update or revise this
forward-looking information and statements except as required by
law. Investors should note that, while the mineralized material
being processed by the Company is assayed, there is no certainty
that the proposed operations will be economically or technically
viable. Investors should also note that the Potosi silver mine and La Chinche property
have no established mineral resources or mineral reserves as
defined by NI 43-101. Although Cyprium Mining has made a production
decision regarding the Potosi
silver mine based on historical production records, historical
results of sampling and drilling, a feasibility study of its
projects has not been completed and there is no certainty that the
proposed operations will be economically or technically viable.
SOURCE Cyprium Mining Corporation