/NOT FOR DISSEMINATION INTO THE UNITED STATES OF AMERICA OR DISTRIBUTION
TO U.S. NEWSWIRE SERVICES/
ALL AMOUNTS ARE STATED IN CANADIAN DOLLARS,
UNLESS OTHERWISE NOTED
TSX Venture Exchange: FEO
VANCOUVER, BC, Feb. 24, 2021 /CNW/ - Oceanic Iron Ore Corp.
(TSXV: FEO) ("Oceanic", or the "Company") is pleased
to announce a non-brokered financing in an aggregate amount of up
to $1,400,000 (the
"Financing").
The subscribers to the Financing will be issued convertible
debentures (the "Debentures") which will earn interest at a
rate of 8.5% per annum over a 60 month term (the "Term"),
payable quarterly.
The principal amount of the Debentures will be convertible to
Units ("Unit") during the Term at the election of the
subscriber at a price of $0.19 per Unit. Each Unit will consist
of 1 common share of the Company and 1 share purchase warrant of
the Company, with each whole warrant entitling the holder to
purchase one common share of the Company at a price of $0.19 per common share for a period of
5 years after closing.
The Debentures will be secured with a first ranking charge at
any time against the assets of the Company, ranking pari-passu with
the current secured debenture holders.
The Company intends to use the proceeds of the Financing for
ongoing negotiations with potential strategic partners, general
claims maintenance, and corporate and working capital
purposes.
The Financing is subject to acceptance for filing by the TSX
Venture Exchange.
Completion of Previous Settlement of Advance Royalty
Payments
The Company has closed on a settlement arrangement, originally
announced on December 2, 2020, in
respect of certain advance royalty payments with one of its Hopes
Advance royalty holders (the "Settlement").
The Company reached agreement with 154619 Canada Inc.
("154619") in respect of its 2018 and 2019 advance royalty
payments of $200,000 through the
issuance of 1,131,221 common shares at a price of $0.1768 per share, and settlement of the 2020
advance royalty payment has been deferred to a date being on or
before November 30, 2021, whereby the
Company has the election to settle such payments either by cash
payment or by way of issuance of common shares of the Company at a
deemed price per share equal to the volume weighted average trading
price of the Company's common shares on the TSX Venture Exchange
for the 20 trading days ending on November
26, 2021.
The Settlement with 154619 was approved by the TSX Venture
Exchange. The common shares issued in connection with the
Settlement are subject to the statutory four-month hold period from
December 8, 2020.
The Company's royalty holders are each entitled to annual
advance royalty payments of $100,000
until the commencement of commercial production on the Company's
Hopes Advance Project. Advance royalty payments are
deductible from actual royalty payments subsequent to the
commencement of commercial production.
OCEANIC IRON ORE CORP. (www.oceanicironore.com)
On behalf of the Board of Directors
"Steven Dean"
Chairman
+604 566-9080
This news release includes certain "Forward-Looking
Statements" as that term is used in applicable securities law. All
statements included herein, other than statements of historical
fact, including, without limitation, statements regarding potential
mineralization and resources, exploration results, and future plans
and objectives of Oceanic Iron Ore Corp. ("Oceanic", or the
"Company"), are forward-looking statements that involve various
risks and uncertainties. In certain cases, forward-looking
statements can be identified by the use of words such as "plans",
"expects" or "does not expect", "scheduled", "believes", or
variations of such words and phrases or statements that certain
actions, events or results "potentially", "may", "could", "would",
"might" or "will" be taken, occur or be achieved. There can be no
assurance that such statements will prove to be accurate, and
actual results could differ materially from those expressed or
implied by such statements. Forward-looking statements are
based on certain assumptions that management believes are
reasonable at the time they are made. In making the
forward-looking statements in this presentation, the Company has
applied several material assumptions, including, but not limited
to, the assumption that: (1) there being no significant disruptions
affecting operations, whether due to labour/supply disruptions,
damage to equipment or otherwise; (2) permitting, development,
expansion and power supply proceeding on a basis consistent with
the Company's current expectations; (3) certain price assumptions
for iron ore; (4) prices for availability of natural gas, fuel oil,
electricity, parts and equipment and other key supplies remaining
consistent with current levels; (5) the accuracy of current mineral
resource estimates on the Company's property; and (6) labour and
material costs increasing on a basis consistent with the Company's
current expectations. Important factors that could cause actual
results to differ materially from the Company's expectations are
disclosed under the heading "Risks and Uncertainties " in the
Company's MD&A filed August 22,
2018 (a copy of which is publicly available on SEDAR at
www.sedar.com under the Company's profile) and
elsewhere in documents filed from time to time, including MD&A,
with the TSX Venture Exchange and other regulatory authorities.
Such factors include, among others, risks related to
the ability of the Company to obtain necessary financing and
adequate insurance; the economy generally; fluctuations in the
currency markets; fluctuations in the spot and forward price of
iron ore or certain other commodities (e.g., diesel fuel and
electricity); changes in interest rates; disruption to the credit
markets and delays in obtaining financing; the possibility of cost
overruns or unanticipated expenses; employee relations.
Accordingly, readers are advised not to place undue reliance on
Forward-Looking Statements. Except as required under
applicable securities legislation, the Company undertakes no
obligation to publicly update or revise Forward-Looking Statements,
whether as a result of new information, future events or
otherwise.
Neither the 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.
SOURCE Oceanic Iron Ore Corp.
