Lucky Extends the Maturity Date and Amends Terms of the Convertible Debenture

Rhea-AI Summary

Lucky Minerals Inc. (OTC:LKMNF) announced a significant update regarding its convertible debenture originally dated October 4, 2018. The maturity date has been extended by two years to October 4, 2023, with the interest rate reduced to 8% per annum. The conversion price is now set at $0.10 per unit, which includes one common share and a half share purchase warrant, exercisable at $0.15 until the new maturity date. The debenture, valued at $1,259,321 as of April 30, 2021, awaits TSX Venture Exchange approval.

Positive

• Maturity date of convertible debenture extended to October 4, 2023.
• Interest rate on debenture reduced to 8% per annum.
• Conversion price lowered to $0.10 per unit.

Negative

• The need to amend the debenture suggests potential liquidity concerns.

VANCOUVER, BC / ACCESSWIRE / September 30, 2021 / Lucky Minerals Inc. (TSXV:LKY)(OTC:LKMNF)(FRA:LKY) "Lucky" or the "Company") announces that it has reached agreement with holders of the convertible debenture entered into on October 4, 2018 (the "Debenture"), which Debenture is set to mature on October 4, 2021. Pursuant to the amendment to the Debenture, the maturity date is extended by two years to October 4, 2023, the interest rate lowered to 8% per annum and the conversion price to $0.10 per unit (the "Unit"), with each Unit being comprised of one common share and one-half common share purchase warrant, with each whole warrant exercisable into one common share at a price of $0.15 per common share until October 4, 2023 (the "Amended Agreement"). As at April 30, 2021, the Debenture was valued at $1,259,321.

The Amended Agreement is subject to TSX Venture Exchange Approval.

About Lucky

Lucky is an exploration and development company targeting large-scale mineral systems in proven districts with the potential to host world class deposits. Lucky owns a 100% interest in the Fortuna Property.

The Company's Fortuna Project is comprised of twelve contiguous, 550 km² (55,000 Hectares, or 136,000 Acres) exploration concessions. Fortuna is located in a highly prospective, yet underexplored, gold belt in southern Ecuador.

Covid-19 Safety Protocols

Lucky has strict rules in place for all workers arriving to and from field sites. All personnel are tested upon arriving and leaving and are tested every two weeks. All personnel are housed in separate and private accommodations and are isolated from the community.

ON BEHALF OF THE BOARD

"François Perron"
President and Chief Executive Officer

Further information on Lucky can be found on the Company's website at www.luckyminerals.com and at www.sedar.com, or by contacting François Perron, President and CEO, by email at investors@luckyminerals.com or by telephone at (866) 924 6484.

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 Regarding Adjacent Properties and Forward-Looking Information

This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such factors include, but are not limited to: uncertainties related to exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters. This list is not exhaustive of the factors that may affect the Company's forward-looking information. Important factors that could cause actual results to differ materially from the Company's expectations also include risks detailed from time to time in the filings made by the Company with securities regulators.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will not update or revise publicly any of the included forward-looking statements unless required by Canadian securities law.

SOURCE: Lucky Minerals Inc.

View source version on accesswire.com:
https://www.accesswire.com/666308/Lucky-Extends-the-Maturity-Date-and-Amends-Terms-of-the-Convertible-Debenture

FAQ

What changes were made to Lucky Minerals' convertible debenture?

Lucky Minerals extended the maturity date of its convertible debenture to October 4, 2023, reduced the interest rate to 8%, and lowered the conversion price to $0.10 per unit.

What is the value of Lucky Minerals' convertible debenture?

As of April 30, 2021, the convertible debenture was valued at $1,259,321.

What are the terms of the new convertible debenture agreement for LKMNF?

The new terms include an 8% interest rate, a conversion price of $0.10 per unit, and each unit consists of one common share and a half common share purchase warrant.

When is the new maturity date for Lucky Minerals' convertible debenture?

The new maturity date is set for October 4, 2023.