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TSX-V: CUG and CUG.DB
MONTREAL, April 28, 2016 /CNW/ - Cyprium Mining Corporation
(TSXV: CUG) ("Cyprium" or the "Company") is
pleased to announce that it has completed a second closing of its
previously announced private placement of up to 8,000,000 units
(the "Units") at a price of $0.065
per Unit for gross proceeds of up to $520,000 (the "Offering"). In this closing,
Cyprium issued 2,300,000 Units for gross proceeds of $149,500 (the "First Tranche"). Each Unit is
comprised of one (1) common share in the capital of the Corporation
("Common Share") and one (1) share purchase warrant of the
Corporation ("Warrant"). Each Warrant will be exercisable into one
Common Share at an exercise price of $0.10 expiring two (2) years from the date of
issuance.
The net proceeds made available through the sale of the Units
will be used by the Company to pay for the continued development of
the Company's Potosi mining
project in Mexico, the costs of
the Offering, for working capital and general corporate
purposes.
Cyprium has paid finders a cash commission of up to 8% of the
proceeds that have resulted from such parties efforts, subject to
compliance with applicable securities laws. The finders have also
been granted warrants to purchase up to 8% of the number of Units
sold under this second closing, with each warrant entitling the
holder to purchase one Unit at CDN$0.065 per Unit for a period of eighteen
months from the second closing.
The Company announces that it has completed certain of its
previously disclosed conversion of certain secured and unsecured
debts into convertible debentures of the Company (the "Debt
Conversions"). Arm's length holders of $90,000 of secured debt and US $21,000 (CDN $28,000) of non-secured debt by a company
wholly-owned by the Chairman and CEO of the Company have been
converted into convertible unsecured debentures (the
"Convertible Debentures"). The Convertible Debentures will
mature three (3) years from the date of issuance and will bear
interest at a rate of 8% per annum payable quarterly in cash. The
principal amount of the Convertible Debentures shall be convertible
at any time at the option of the holder into Common Shares of the
Company at a price of $0.08 per
Common Share in the first year following closing and $0.10 per Common Share thereafter, and upon
giving effect to such conversion, all accrued and unpaid interest
will be paid in full within 60 days.
The Company has also received conditional approval from the TSX
Venture Exchange Inc. (the "Exchange") to complete up to
$570,887 in various debt settlements
by way of either Units and/or Common Shares to be issued at a price
of $0.065 per Unit and/or Common
Share. The Company has entered into and completed debt settlements
with eleven creditors who are not insiders of the Company for an
amount of $413,588 by way of issuance
of 6,362,891 Units of the Company. The Company expects to shortly
close an additional two debt settlements with arm's length
creditors for a total of $54,025 by
way of issuance of 831,154 Units. A further debt settlement in the
amount of $95,900 to be completed by
the issuance of 1,475,385 Common Shares to four insiders of the
Company is subject to the approval of disinterested shareholders at
the Company's next annual shareholders meeting.
Final closing of certain Debt Conversions and the issuance of
the Common Shares and the Convertible Debentures pursuant to the
same is subject to certain conditions including, but not limited
to, the receipt of all necessary approvals, including the approval
of the Exchange. Pursuant to applicable securities laws, all
securities issued pursuant to the Debt Conversions will be subject
to a hold period of four months plus one day following the closing
of the Debt Conversions.
About Cyprium Mining Corporation
For the description of Cyprium Mining's business and the
Company's Forward Looking Statement Disclaimer which form an
integral part of this news release please visit our website at:
http://www.cypriummining.com/en/investors/disclaimers
Neither TSX Venture Exchange Inc. nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange Inc.) accepts responsibility for the adequacy or
accuracy of this release.
This news release contains "forward-looking information" (within
the meaning of applicable Canadian securities laws) and "forward
-looking statements" (within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995). Such statements or
information are identified with words such as "anticipate",
"believe", "expect", "plan", "intend", "potential", "estimate",
"propose", "project", "outlook", "foresee" or similar words
suggesting future outcomes or statements regarding an outlook. Such
statements include, among others, those concerning the Company's
anticipated plans for developments of the Company and its mining
projects.
Such forward-looking information or statements are based on a
number of risks, uncertainties and assumptions which may cause
actual results or other expectations to differ materially from
those anticipated and which may prove to be incorrect. Assumptions
have been made regarding, among other things, management's
expectations regarding future growth, plans for and completion of
projects by Company's third party relationships, availability of
capital, and the necessity to incur capital and other expenditures.
Actual results could differ materially due to a number of factors,
including, without limitation, operational risks in the completion
of Company's anticipated projects, delays or changes in plans with
respect to the development of Company's anticipated projects by
Company's third party relationships, risks affecting the ability to
develop projects, risks inherent in operating in foreign
jurisdictions, the ability to attract key personnel, and the
inability to raise additional capital. No assurances can be given
that the efforts by the Company will be successful. Additional
assumptions and risks are set out in detail in the Company's
MD&A, available on SEDAR at www.sedar.com.
Although the Company believes that the expectations reflected in
the forward-looking information or statements are reasonable,
prospective investors in the Company's securities should not place
undue reliance on forward-looking statements because the Company
can provide no assurance that such expectations will prove to be
correct. Forward-looking information and statements contained in
this news release are as of the date of this news release and the
Company assumes no obligation to update or revise this
forward-looking information and statements except as required by
law. Investors should note that, while the mineralized material
being processed by the Company is assayed, there is no certainty
that the proposed operations will be economically or technically
viable. Investors should also note that the Potosi silver mine and La Chinche property
have no established mineral resources or mineral reserves as
defined by NI 43-101. Although Cyprium Mining has made a production
decision regarding the Potosi
silver mine based on historical production records, historical
results of sampling and drilling, a feasibility study of its
projects has not been completed and there is no certainty that the
proposed operations will be economically or technically viable.
SOURCE Cyprium Mining Corp