O3 Mining Announces Election to Issue Common Shares in Partial Satisfaction of Convertible Debenture Interest Obligation

Rhea-AI Summary

O3 Mining (TSXV: OIII, OTCQX: OIIIF) announced it will issue 215,517 common shares at $1.16 per share to satisfy $250,000 (50%) of its interest obligation under the senior unsecured convertible debenture issued on June 19, 2023. This partial interest payment is for the period ending June 19, 2024. The company has the option to cover up to 50% of future interest payments in shares, subject to TSX Venture Exchange approval. Terms require the share price to be the higher of the 10-day volume-weighted average price or the TSX minimum price.

Positive

• O3 Mining maintains liquidity by issuing shares instead of cash.
• Share-based interest payment allows O3 Mining to allocate cash to other needs.

Negative

• Issuing new shares will dilute existing shareholder equity.
• The necessity to issue shares indicates potential cash flow constraints.

TSXV:OIII | OTCQX:OIIIF - O3 Mining

TORONTO, June 19, 2024 /PRNewswire/ - O3 Mining Inc. (TSXV: OIII) (OTCQX: OIIIF) ("O3 Mining" or the "Corporation") announces that in accordance with the terms of the senior unsecured convertible debenture issued on June 19, 2023 (the "Debenture"), it has elected to issue to the holder thereof 215,517 common shares (the "Common Shares") at a deemed price of $1.16 per Common Share as payment for, and for the satisfaction of, the amount of $250,000, representing 50% of the total interest obligation due and payable by the Corporation in respect of the June 19, 2024 interest payment owing under the Debenture.

Pursuant to the Debenture, O3 Mining shall have the right, subject to the approval of the TSX Venture Exchange and other conditions set out in the Debenture, to elect to satisfy up to 50% of its interest payment obligation in respect of any interest period through the issuance of Common Shares of at a price per share equal to the greater of (i) the volume weighted average price of the Common Shares on the TSX Venture Exchange during the 10 consecutive trading days ending on the trading day immediately preceding the applicable interest payment date, and (ii) the minimum price permitted by the TSX Venture Exchange.

The issuance of the Common Shares as partial payment of the interest payment owing under  the Debenture will be subject to the terms and conditions of the Debenture as well as the receipt of all requisite approvals, including the approval of the TSX Venture Exchange.

About O3 Mining Inc.

O3 Mining Inc. is a gold explorer and mine developer on the road to produce from its highly prospective gold camps in Québec, Canada. O3 Mining benefits from the support and expertise of a team of industry leaders as it grows towards becoming a gold producer with several multi-million-ounce deposits in Québec.

O3 Mining is well-capitalized and owns a 100% interest in all its properties (107,000 hectares) in Québec. O3 Mining trades on the TSX Venture Exchange (TSXV: OIII) and OTC Markets (OTCQX: OIIIF). The Corporation is focused on delivering superior returns to its shareholders and long-term benefits to its stakeholders. Further information can be found on our website at https://o3mining.com.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections, and interpretations as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance, including the receipt of approval of the TSX Venture Exchange (often but not always using phrases such as "expects", or "does not expect", "is expected", "interpreted", "management's view", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Corporation, at the time it was made, involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the companies to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, the parties cannot assure shareholders and prospective purchasers of securities that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Corporation nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Corporation does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

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 news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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SOURCE O3 Mining Inc.

FAQ

What did O3 Mining announce on June 19, 2024?

O3 Mining announced it will issue 215,517 common shares to satisfy $250,000 of its interest obligation under a senior unsecured convertible debenture.

What is the stock symbol for O3 Mining?

The stock symbols for O3 Mining are TSXV: OIII and OTCQX: OIIIF.

How many shares will O3 Mining issue as part of its debt interest payment?

O3 Mining will issue 215,517 common shares.

What is the deemed price per share for the O3 Mining debt interest payment?

The deemed price per share is $1.16.

What percentage of the interest obligation does the issuance of shares cover?

The issuance of shares covers 50% of the interest obligation.

What is the total interest payment O3 Mining owes?

The total interest payment due is $500,000.

What are the conditions for O3 Mining to issue shares to satisfy interest payments?

The conditions include approval from the TSX Venture Exchange and the share price being either the 10-day volume-weighted average price or the TSX minimum price.