TSX-V: GMN
TORONTO, April 7, 2016 /CNW/ - (TSXV: GMN) GobiMin Inc.
(the "Company" or "GobiMin") announce that its
subsidiary, GobiMin Silver Limited ("GSL"), has entered into
a loan agreement with China Precision Material Limited
("CPML"), a non-arm's length party, with respect to a
USD4,000,000 revolving, term loan
facility bearing an interest rate of 3.5% per annum in favor of
CPML (the "Loan"). GSL owns a 38.30% indirect equity
interest in CPML, which engages in the trading of metals,
predominately silver, in Hong
Kong.
The Loan will have an initial 6-month term ending on
October 6, 2016 and may be extended
by mutual consent. GobiMin may demand repayment of principal and
interest anytime with 3 days' notice.
The Loan is considered a "related party transaction" under
Multilateral Instrument 61-101 Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). The
Company is relying on Sections 5.5(a) and 5.7(1)(a) of MI 61-101,
respectively, for exemptions from the formal valuation and minority
approval requirements under MI 61-101, as the amount of the Loan to
CPML does not exceed 25% of the Corporation's market
capitalization.
Closing of the Loan is subject to receipt of all applicable
regulatory and exchange approvals.
"Neither 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."
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SOURCE GobiMin Inc.