VANCOUVER, Oct. 10, 2014 /CNW/ - Quartz Mountain Resources
Ltd. ("Quartz Mountain" or the "Company") (TSX-V: QZM; OTCBB:
QZMRF) announces that Bear Claw Capital Corp. ("Bear Claw") has
agreed to further amend the terms of a convertible debenture note
("Debenture") that formed part of the payment obligations under a
2012 mineral property purchase agreement to acquire the Gnat Pass
Property, which is a portion of the Quartz Mountain's Galaxie
Project located in northwestern British
Columbia.
The current Principal Sum of the Debenture is $550,000. The terms of the amended agreement
include:
- The Principal Sum outstanding on the Debenture will bear
interest from October 1, 2014 until
the Final Repayment Date. The interest rate has been reduced to
7.5% per annum.
- A Principal repayment of $50,000
was made upon signing of the amended Debenture, and a further
amount equal to the lesser of (i) $50,000 and (ii) the outstanding Principal Sum
will be repaid to Bearclaw on or before the 31st day of January of
each year, commencing with the 31st day of January 2015 until the Debenture has been repaid
in full.
- If, at any time from and after the date of the amended
agreement until the Debenture shall have been repaid in full, a new
equity investment consisting of cash proceeds of at least
$1,000,000 is made in Quartz Mountain
by one or more investors (the "New Financing"), then fifty percent
(50%) of the outstanding balance of the Principal Sum as of the
date of such New Financing, plus all accrued but unpaid Interest
thereon, shall automatically convert into fully paid common shares
of the Company (the "Conversion Shares") at an agreed conversation
price equal to the greater of the 20 day closing VWAP for the
common shares of the Company and the purchase price under the New
Financing for the Principal Sum, subject to the rules and policies
of the TSX Venture Exchange, with the conversation price for any
interest payable being based on the Market Price under TSX Venture
Exchange rules.
- Quartz Mountain may repay the Principal Sum at any time without
penalty.
The amendment is subject to TSX Venture Exchange approval if and
as required.
About Quartz Mountain Resources Ltd.
Quartz Mountain is a Vancouver-based exploration company focused on
making a major new deposit discovery in British Columbia. The Company is associated
with Hunter Dickinson Inc. (HDI), a diversified, global mining
group with more than 25 years of mineral development success.
On behalf of the Board of Directors
Ronald W. Thiessen
President and CEO
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.
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts that address exploration
drilling, exploitation activities and other related events or
developments are forward-looking statements. Although the Company
believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the forward
looking statements. Assumptions used by the Company to develop
forward-looking statements include the following: Quartz Mountain's
projects will obtain all required environmental and other permits
and all land use and other licenses, studies and exploration of
Quartz Mountain's projects will continue to be positive, and no
geological or technical problems will occur. Factors that could
cause actual results to differ materially from those in
forward-looking statements include market prices, potential
environmental issues or liabilities associated with exploration,
development and mining activities, exploration and exploitation
successes, continuity of mineralization, uncertainties related to
the ability to obtain necessary regulatory approvals, permits,
licenses and title and delays due to third party opposition,
changes in and the effect government policies regarding mining and
natural resource exploration and exploitation, continued
availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and actual
results or developments may differ materially from those projected
in the forward-looking statements. For more information, investors
should review Quartz Mountain Resources Ltd.'s annual Form 20-F
filing with the United States Securities and Exchange Commission at
www.sec.gov and its home jurisdiction filings that are available at
www.sedar.com.
SOURCE Quartz Mountain Resources Ltd.