TORONTO, ON
--(Marketwired -
April 27, 2016
) -
LeadFX Inc.
(the "Company" or "LeadFX") (TSX: LFX) today announced that it has reached an agreement with its secured lender,
Enirgi Group Corporation
("Enirgi Group"), to extend the maturity date for re-payment of the outstanding principal and accrued interest owing to
Enirgi Group
to
June 30, 2017
, subject to shareholder approval.
Enirgi Group
has agreed to enter into an amended and restated credit agreement (the "Amended and Restated Credit Agreement") with the Company to extend the maturity date and, subject to certain limited exceptions, forbear from exercising its rights therein, until
June 30, 2017
. All other material terms and conditions of the secured credit agreement will remain the same. The Amended and Restated Credit Agreement will be executed subject to the satisfaction of certain conditions, including, (i) the receipt of all necessary regulatory and stock exchange approvals, and (ii) approval by a majority of the disinterested shareholders ("Minority Shareholders") of
LeadFX
at the annual and special meeting of shareholders of the Company to be held on
Thursday, June 9, 2016
(the "Meeting"), in accordance with the rules of the
Toronto Stock Exchange
.
Further details will be provided by the Company with respect to the business of the Meeting at the time of filing of the Management Information Circular.
Robert Scargill
, Managing Director of
LeadFX
commented: "We are pleased that
Enirgi Group
has agreed to extend the maturity date for payment of the outstanding balance for another 12 months. The extension, together with the recently announced loan facility with
Sentient Group
, will allow us the financial flexibility to maintain restart readiness at the
Paroo Station Mine
and seek to grow our lead-silver project portfolio. We encourage all Minority Shareholders to vote in favour of the Amended and Restated Credit Agreement at the Meeting."
The potential restart of the
Paroo Station Mine
will be contingent on several external factors including a sustained improvement in LME lead prices supported by positive market fundamentals, favourable foreign exchange rates and treatment charges as well as securing the necessary financing to restart operations.
Additional information on
LeadFX
can be found in the Company's continuous disclosure documents on SEDAR at
www.sedar.com
and the Company's website at
www.leadfxinc.com
About Lead FX
LeadFX
is a Canadian-based mining company focused on the development of lead-silver projects located in stable jurisdictions. Our current portfolio includes a restart-ready lead operation in
Western Australia
and a development project in
Utah, USA
. The Company is developing opportunities at its new properties in
North America
to underpin future cash flow and growth.
LeadFX
trades under the symbol "LFX" on the
Toronto Stock Exchange
.
Forward-Looking Statements
This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws. Examples of forward-looking information in this news release includes but is not limited to statements and information concerning: final
Toronto Stock Exchange
and Minority Shareholder approval of the Amended and Restated Credit Agreement; the ability of
LeadFX
to restart the
Paroo Station Mine
, grow our lead-silver resource portfolio and obtain additional financing; LME lead prices; foreign exchange rates; and treatment charges. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "contemplate", "target", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking information by its nature requires assumptions and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information, and readers are cautioned not to place undue reliance on such information. These statements are based on expectations, estimates and projections as at the date of this news release and are subject to a number of risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievement may vary materially from those expressed or implied by the forward-looking information contained in this news release. These risk factors should be carefully considered and readers are cautioned not to place undue reliance on forward-looking information, which is current only as of the date of this news release. All subsequent forward-looking information attributable to
LeadFX
herein is expressly qualified in its entirety by the cautionary statements contained in or referred to herein.
LeadFX
does not undertake any obligation to release publicly any revisions to this forward-looking information to reflect events or circumstances that occur after the date of this news release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
For further information please contact:
LeadFX Inc.
Jessica Helm
VP, Corporate Communications Suite 3001,
1 Adelaide Street East
Toronto, Ontario M5C 2V9 (416) 867 9298 Email:
info@leadfxinc.com
Source:
LeadFX Inc.