The Funded Construction Services with CREC10 meets the requirements for additional subordinated funding, with regards to the signed term sheets dated
OPUK and CDPR will enter into commercial contracts for the supply of zinc, copper and lead concentrates that are both committed and not committed to existing off-taker. OPUK will advance to CDPR
Interest shall accrue on the amounts outstanding under the Prepayment Facility at the rate of: (i) the 3 month London Interbank Offered Rate (immediately prior to the advance having been made) + 7.5%; or (ii) the 3 month CME Term SOFR + 7.5%, if the foregoing LIBOR rate becomes unavailable (or such other interest rate as agreed between the parties); until repaid in full.
CDPR upon the funding of the first drawdown will issue warrants to the OPUK for a face value of CA$ 2.5M with an exercise price of CA$ 0.25, subject to exchange approval.
ARENA will provide a 36-month loan facility up to
CDPR, upon obtainment of funds from the loan facility, will issue to ARENA CA$ 5.0M in face value of warrants at an exercise price of CA$ 0.25, subject to exchange approval.
CREC10 and CDPR will enter into a binding agreement for
- Magistral-Pipe tunnel and services, about
US$ 5.0M - Santander tailing facility expansion, about
US$ 5.0M - La Cuñada ramp and services, about
US$ 2.0M
In addition, CREC10 and CDPR will enter into a binding commercial contract for mining services at the Santander operation for a minimum of 8 years covering the following activities:
Mine Development - Mine Transportation
- Mining Services
Project Support Services
Last, CREC10 will lease a production fleet for CDPR to "own and operate", further reducing the Company's unit costs.
The CDPR - CREC10 Funded Construction Services agreement will include a repayment plan and respective warranties to be agreed prior to closing. Repayment will be subordinated to the
Binding documentation will include a Master Contract, with the following Rights of First Refusal ("ROFR") in favor of CREC10:
- ROFR on future projects at
Santander Mine (e.g. transportation of concentrates) - ROFR on execution of the CAPEX projects at the
Quiulacocha TSF Project - Contract mining services exclusivity at
Santander and Quiulacocha TSF Project for the next 8 years
The Company expects to sign the CREC 10 Master Contract and Funded Construction Services agreement, simultaneously with the closing of the previously announced Arena and OPUK financings, during the month of
Mr.
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified using forward-looking terminology such as "plans", "seeks", "expects", "estimates", "intends", "anticipates", "believes", "could", "might", "likely" or variations of such words, or statements that certain actions, events or results "may", "will", "could", "would", "might", "will be taken", "occur", "be achieved" or other similar expressions. Forward-looking statements, including the expectations of CDPR's management regarding the completion of the Transaction as well as the business and the expansion and growth of CDPR's operations, are based on CDPR's estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of CDPR to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Forward-looking statements are subject to business and economic factors and uncertainties and other factors that could cause actual results to differ materially from these forward-looking statements, including the relevant assumptions and risks factors set out in CDPR's public documents, available on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Although CDPR believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements and forward-looking information. Except where required by applicable law, CDPR disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE
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