Amarc Announces Amendment To Loan Agreement

Rhea-AI Summary

Amarc Resources Ltd. announced a $100,000 increase to an existing $1 million loan from a director and major shareholder, now totaling $1.1 million. The unsecured loan will incur a 10% annual interest and is due by November 26, 2024, or upon financing milestones. In return, Amarc will issue 1,176,470 warrants at $0.085 per share. Proceeds will fund a $100,000 option requirement for mineral claims, with an additional $900,000 payable over the next nine years. The company focuses on developing high-value porphyry copper-gold mines in British Columbia.

Positive

• Loan increase enhances available capital to $1.1 million.
• Warrants issued provide potential future capital through equity financing.
• Expansion of mineral claims supports growth in exploration prospects.

Negative

• Loan secured from a director may raise governance concerns.
• Interest rate of 10% could increase financial burden on the company.

VANCOUVER, BC / ACCESSWIRE / May 26, 2022 / Amarc Resources Ltd. ("Amarc" or the "Company") (TSX-V:AHR); (OTCQB:AXREF) announces that it has entered into a Second Loan Amendment Agreement dated May 25, 2022, pursuant to which it has agreed to a $100,000 increase to an existing $ 1 million loan with the lender (the "Loan") who is a director and significant shareholder of the Company (the "Lender"). The Loan is unsecured, will bear interest at a rate of 10% per annum and is repayable on or before the earlier of November 26, 2024, the occurrence of a default or on achievement of financing milestones. In connection with the Loan, Amarc will issue to the Lender a loan bonus in the form of 1,176,470 warrants (the "Bonus Warrants"), each entitling the holder to acquire one common share of Amarc for five years at a price of $0.085 per share. The Bonus Warrants will be subject to a four month hold period commencing from the date of issuance thereof. The Loan and Bonus Warrants are subject to acceptance by the TSX Venture Exchange.

The proceeds will be used to pay the initial option requirement of $100,000 for a five BC mineral claims group option from an arm's length optionor. Total additional option payments are a further $900,000 at $100,000 per year.

About Amarc Resources Ltd.

Amarc is a mineral exploration and development company with an experienced and successful management team focused on developing a new generation of long-life, high-value porphyry copper-gold mines in BC. By combining high-demand projects with dynamic management, Amarc has created a solid platform to create value from its exploration and development-stage assets.

Amarc is advancing its 100%-owned IKE, DUKE and JOY porphyry copper±gold districts located in different prolific porphyry regions of southern, central and northern BC, respectively. Each district represents significant potential for the development of multiple and important-scale, porphyry copper±gold deposits. Importantly each of the three districts is located in proximity to industrial infrastructure - including power, highways and rail.

For further details on Amarc Resources Ltd., please visit the Company's website at www.amarcresources.com or contact Dr. Diane Nicolson, President and CEO, at (604) 684-6365 or within North America at 1-800-667-2114.

ON BEHALF OF THE BOARD OF DIRECTORS OF AMARC RESOURCES LTD.

Dr. Diane Nicolson
President and CEO

Neither the TSX Venture Exchange nor any other regulatory authority accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Amarc Resources Ltd.

View source version on accesswire.com:
https://www.accesswire.com/702862/Amarc-Announces-Amendment-To-Loan-Agreement

FAQ

What is Amarc Resources Ltd.'s recent loan agreement?

Amarc Resources Ltd. announced a $100,000 increase to an existing $1 million loan, now totaling $1.1 million, to be repaid by November 26, 2024.

What are the terms of the loan from Amarc's director?

The loan is unsecured, bears 10% annual interest, and is repayable on specified conditions, including default or financing milestones.

How many warrants is Amarc issuing in connection with the loan?

Amarc will issue 1,176,470 warrants to the lender, each allowing the purchase of a share at $0.085 for five years.

What will the funds from the loan be used for?

The loan proceeds will fund the initial $100,000 option requirement for a mineral claims group in British Columbia.

What is the stock symbol for Amarc Resources Ltd.?

The stock symbol for Amarc Resources Ltd. is AXREF on the OTCQB.