VANCOUVER, British Columbia, Aug. 01, 2017 (GLOBE NEWSWIRE) -- The Pacific Road Resources Funds (“PRRF”) announce that PRRF has entered into an amending agreement (the “Amending Agreement”) with First Bauxite Corporation (the “Corporation”) to extend the maturity date of the Offeror’s C$9,847,901 aggregate principal amount of convertible notes (the “Notes”) to June 30, 2018. In addition, PRRF entered into an option agreement with Resource Capital Fund V LP and Resource Capital Fund VI LP (collectively, “RCF”), pursuant to which PRRF granted RCF an option (the “Option”) to acquire all of PRRF’s 13,127,984 common shares of the Corporation (“Common Shares”) and C$9,847,901 aggregate principal amount of Notes. The Option may be exercised by RCF at any time until June 30, 2018 for an aggregate exercise price of US$3,000,000. In addition, RCF paid an initial payment of US$750,000 to PRRF.
PRRF has not acquired or disposed of any securities at this time. Upon the exercise of the Option by RCF, PRRF would dispose of all of the 13,127,984 Common Shares held by it, representing approximately 11.17% of the currently issued outstanding Common Shares, and C$9,847,901 aggregate principal amount of Notes. The Notes can be converted into Common Shares at a conversion price of C$0.10. If fully converted, the Notes would be convertible into 98,479,010 Common Shares. Upon exercise of the Option, PRRF would hold no securities of the Corporation.
PRRF originally purchased the securities for investment purposes and granted the Option with a view to selling its Common Shares and Notes if the Option is exercised. PRRF currently has no other plans or intentions that relate to its investment in the Corporation. Depending on market conditions, general economic and industry conditions, the Corporation’s business and financial condition and/or other relevant factors, PRRF may develop other plans or intentions in the future relating to one or more of the above items.
A copy of the early warning report filed in connection with the investment will be available on the Corporation’s profile on SEDAR at www.sedar.com or may be obtained by contacting Greg Dick at +61 2 9241 1000.
About Pacific Road Resources Funds and Pacific Road Capital Management Pty Limited
The Pacific Road Resources Funds are private equity funds investing in the global mining industry. They provide expansion and buyout capital for mining projects, mining related infrastructure and mining services businesses located throughout resource-rich regions of the world. The Pacific Road Resources Funds are managed and advised by Pacific Road Capital Management Pty Ltd (“PRCM”). The PRCM team, located in Sydney, Australia, San Francisco, USA, and Vancouver, Canada, is comprised of experienced mining investment professionals that have extensive knowledge and experience in the mining and infrastructure sectors, including considerable operating, project development, transactional and investment banking experience. For further information on the Pacific Road Resources Funds and PRCM, please go to their website at www.pacroad.com.au.