Lion Copper and Gold Corp (TSX-V:LEO, OTCQB:LCGMF) has taken strategic steps to address its debt through the issuance of convertible debentures, empowering future growth and strengthening its financial position.
A significant portion of the debt restructuring involved participation from directors and officers, the company noted in a release.
Lion Copper and Gold CEO Travis Naugle highlighted the significance of the debt restructuring, expressing confidence in the company's future growth, especially with a Stage 3 earn-in decision by Rio Tinto on the horizon.
“Of the nearly US$4 million of accumulated debt, and based on our current commitments, we will have refinanced or converted all but US$900,000 of our debt on completion of the debt restructuring, leaving us in a much stronger financial position,” Naugle said in a statement.
“Furthermore, approximately half of the remaining debt is held by our directors and officers, demonstrating the confidence our leadership has in our company's trajectory."
The junior resource company issued convertible debentures worth $941,813, replacing maturing debentures.
The new debentures carry a maturity date of 12 months and an interest rate of 20% per annum and can be converted into common shares of the company at a price of US$0.06 per share or into shares of Falcon Butte Minerals Corp. at a conversion price of US$0.25 per share.
Holders also receive share purchase warrants.