Greenstone Resources L.P.

Greenstone Resources L.P.

November 30, 2015 13:46 ET

Greenstone Resources L.P. Subscribes for US$1.4 Million Second Tranche of Convertible Debenture of Coro

GUERNSEY, CHANNEL ISLANDS--(Marketwired - Nov. 30, 2015) - Further to a subscription agreement signed on June 16, 2015 ("Subscription Agreement") with Coro Mining Corp. ("Coro"), Greenstone Resources L.P. ("Greenstone") is pleased to announce that it has subscribed for second tranche (US$1.4 million) of a convertible debenture which forms part of a larger ~US$9.0 million combined convertible debenture (aggregate US$6.5 million) and equity financing (~US$2.5 million).

Greenstone subscribed for the first tranche (US$5.1 million) ("first tranche") on 7 August 2015 (jointly with the second tranche the "Convertible Debenture"). The Subscription Agreement further contemplates Greenstone subscribing for 79,800,000 common shares of the Company (the "Equity Offering"), subject to satisfaction of certain conditions precedent.

The Company is required to repay under the Convertible Debenture:

  • US$6.375 million in respect of the first tranche on July 22, 2016 (350 days from issuance).
  • US$1.75 million in respect of the second tranche on November 11, 2016 (350 days from issuance)

In the event that any of these amounts are not repaid in full in cash on its respective maturity dates, any unpaid amount will be converted into common shares of Coro at a conversion price of C$0.04 per share. In addition, Greenstone may, in the circumstances set out in the Convertible Debenture, elect to convert any unpaid amounts into common shares of Coro.

In the event that all of the first tranche is converted into common shares, Greenstone would acquire ownership and control of 291,768,750 common shares of Coro (based on an exchange rate of C$1.33:US$1.00, as of November 27, 2015), representing approximately 64.7% of the issued and outstanding common shares of Coro.

In the event that all of the second tranche is converted into common shares, Greenstone would acquire ownership and control of 58,187,500 common shares of Coro (based on an exchange rate of C$1.33:US$1.00), representing approximately 26.7% of the issued and outstanding common shares of Coro. In the event that all of the first tranche and all of the second tranche convert, Greenstone would acquire ownership and control of an aggregate of 349,956,250 shares (based on an exchange rate of C$1.33:US$1.00), representing approximately 68.7% of the issued and outstanding common shares of Coro.

Should the proposed Equity Offering complete and both tranches of the Convertible Debenture convert, Greenstone would acquire ownership and control of an aggregate of 429,756,250 common shares, representing approximately 72.9% of the issued and outstanding common shares of Coro. In connection with the Convertible Debenture and Equity Offering, Greenstone entered into an investor rights agreement with Coro, as described by Coro in its news release of June 16, 2015.

Greenstone has acquired both the first and second tranche of the Convertible Debenture (and envisages acquiring the common shares of Coro) for investment purposes. Depending on market conditions and other factors, Greenstone may from time to time acquire and/or dispose of securities of Coro or continue to hold its current position. A copy of the early warning report required to be filed with the applicable securities commission in connection with the transactions will be available on SEDAR at www.sedar.com and can be obtained by contacting Jo-Anna Duquemin Nicolle and Sadie Morrisson at +44 1481810100. Greenstone's address is set out below.

Greenstone Resources L.P.
1st Floor, Royal Chambers
St Julian's Avenue
St Peter Port, Guernsey

Contact Information

  • Jo-Anna Duquemin Nicolle
    Sadie Morrisson
    +44 1481810100