TORONTO, ONTARIO--(Marketwired - Jan. 17, 2017) - Routemaster Capital Inc. (TSX VENTURE:RM) ("Routemaster" or the "Company") is pleased to announce that it has acquired a limited partnership interest in the amount of USD$100,000 in GF Comstock 2 LP ("GF Comstock"), an affiliate of GF Capital, LLC.
GF Comstock is the holder of a 11% senior secured debenture due in 2021 (the "Debenture") issued by Comstock Mining Inc. ("Comstock") in the amount of USD$10,723,000. The Debenture is secured by the pledge of the equity interests in all of Comstock's subsidiaries and substantially all of Comstock's assets. Comstock is required to prepay the Debenture with the net cash proceeds from the sale of previously disclosed non-mining properties, subject to customary reinvestment rights.
Until January 1, 2019, interest will be payable in cash and/or in the form of additional Debentures, at Comstock's option. Thereafter, interest will be payable in cash. Comstock has the right to redeem the Debenture, at any time, at a redemption price equal to the outstanding principal balance, plus accrued and unpaid interest and a make-whole amount equal to seven months of interest. The Debenture also includes customary default and cure provisions and, in the event of certain defaults, a default interest rate of 13.5%.
Comstock (NYSE MKT:LODE) is a Nevada-based, gold and silver mining company with extensive, contiguous property in the historic Comstock and Silver City mining districts in Nevada.
About Routemaster Capital Inc.:
Routemaster Capital Inc. is a Canadian investment company that carries on business with the objective of enhancing shareholder value.
FORWARD-LOOKING STATEMENTS: This news release contains certain forward-looking statements, including statements regarding the Company's investment in GF Comstock, the Debenture, the ability of Comstock to meet its obligations pursuant to the Debenture and future investments by the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf, except as required by applicable law.
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