VANCOUVER, British Columbia, June 28, 2018 (GLOBE NEWSWIRE) -- The Pacific Road Resources Funds (“PRRF”) announce that Resource Capital Fund V LP and Resource Capital Fund VI LP (collectively, “RCF”) have exercised their previously disclosed option (the “Option”) to acquire all of PRRF’s 13,127,984 common shares (“Common Shares”) in the capital of First Bauxite Corporation (the “Corporation”) and C$9,847,901 aggregate principal amount of convertible notes (the “Notes”) due June 30, 2018. The Option was granted pursuant to an option agreement entered into with RCF on July 31, 2017. In connection with such exercise, PRRF received a gross exercise price of US$3,000,000, which based on the Bank of Canada’s exchange rate on June 27, 2018, would equal approximately C$3,992,100.00. As consideration for the Option, RCF previously paid US$750,000 to PRRF at the time of the entering into of the option agreement.
Upon the exercise of the Option by RCF on June 28, 2018, PRRF disposed of all of the 13,127,984 Common Shares held by it, representing approximately 11.17% of the currently issued and 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 (excluding any accrued interest), the Notes would be convertible into 98,479,010 Common Shares. As a result of the exercise of the Option and sale, PRRF no longer holds any 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 was 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 Paul Evans 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 and Vancouver, Canada, is comprised of experienced mining investment professionals that have extensive knowledge and experience in the mining sector, 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.
Paul Evans
+61 2 9241 1000