Azarga Metals to Pay Baker Steel Semi-Annual Interest in Shares

Rhea-AI Summary

Azarga Metals Corp. has opted to pay the semi-annual interest of C$188,216 on its US$3.5 million convertible debt to Baker Steel Resources Trust Limited in shares rather than cash. This will result in the issuance of 1,505,730 common shares at a price of $0.125 per share, based on the closing price on April 8, 2021. The shares will be delivered within 14 days of the payment date, pending TSX-V approval. Azarga owns the Unkur Copper-Silver Project in Russia, with an inferred resource of 62 million tonnes containing 0.53% copper and 38.6g/t silver.

Positive

• Payment of interest in shares conserves cash flow.
• Continued support from Baker Steel indicates investor confidence.

Negative

• Dilution of existing shareholders due to share issuance.
• Dependence on market conditions for the valuation of newly issued shares.

WHITE ROCK, BC / ACCESSWIRE / April 12, 2021 / AZARGA METALS CORP. ("Azarga Metals" or the "Company") (TSX.V:AZR) has delivered a notice to Baker Steel Resources Trust Limited ("BSRT") indicating that it wishes to exercise its option to pay the semi-annual interest owed on the US$3.5 million (fixed at C$4,692,550) convertible debt to BSRT in shares. Interest owed on 10 April 2021 is C$188,216 that will be settled by the issue of 1,505,730 common shares priced at $0.125 per share, being the closing price on 8 April 2021.

Pursuant to the loan agreement with BSRT, the shares are to be delivered to BSRT within 14 days following the interest payment date of 10 April 2021. Issuance of the shares is subject to approval of the TSX-V.

About Azarga Metals Corp.

Azarga Metals is a mineral exploration and development company that owns 100% of the Unkur Copper-Silver Project in the Zabaikalsky administrative region in eastern Russia. On completion of a first phase physical exploration program in 2016-2018, the Company estimated an Inferred Resource of 62 million tonnes at 0.53% copper and 38.6g/t silver for the project in the report entitled "Technical Report and Preliminary Economic Assessment for the Unkur Copper-Silver Project, Kodar-Udokan, Russian Federation" dated effective 30, August 2018 authored by Tetra Tech Mining & Minerals.

AZARGA METALS CORP.

Michael Hopley
President and Chief Executive Officer

For further information please contact: Doris Meyer, at +1 604 536-2711 ext. 6, visit www.azargametals.com, or follow us on Twitter @AzargaMetals. The address of the head office of Azarga Metals is Unit 1 - 15782 Marine Drive, White Rock, BC V4B 1E6, British Columbia, Canada.

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.

Cautionary Statement:

This news release contains forward-looking statements that are based on the Corporation's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current planned exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labor disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Corporation disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not a guarantee of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

SOURCE: Azarga Metals Corp.

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https://www.accesswire.com/640055/Azarga-Metals-to-Pay-Baker-Steel-Semi-Annual-Interest-in-Shares

FAQ

What is Azarga Metals Corp.'s recent interest payment announcement?

Azarga Metals announced it will pay C$188,216 interest on its convertible debt to Baker Steel in shares, issuing 1,505,730 common shares at $0.125 each.

How will Azarga Metals pay the interest on its convertible debt?

The company will issue shares instead of cash to pay the interest owed to Baker Steel Resources Trust Limited.

What is the impact of Azarga's share issuance on investors?

The issuance may dilute existing shareholders' equity but helps the company conserve cash.

What is the status of Azarga Metals' Unkur Copper-Silver Project?

Azarga Metals owns the Unkur Copper-Silver Project, which has an inferred resource of 62 million tonnes with 0.53% copper and 38.6g/t silver.