Vancouver, British Columbia - Copper North Mining Corp. ("Copper North" or the "Company") (TSX.V:COL) announces that it will repay the loan (the "Loan") provided by an insider of the Company (the "Lender") through a combination of shares and cash as part of its on-going efforts to reduce the Company's outstanding debt. The conversion of the Loan to equity allows the Company to significantly improve its balance sheet while spending a minimal amount of cash.
As announced on May 8, 2013, the Lender provided Copper North with the $300,000 Loan that carried an interest rate of eight percent (8%) per year. In consideration of the risk taken by the Lender, the Lender was also entitled to a bonus of shares equal to 20% of the principal amount of the Loan.
In accordance with the loan agreement, the Company will repay all amounts due to the Lender under the Loan with a combination of cash and shares. The Company will pay $43,000 in cash and issue 6,860,000 common shares at a deemed price of $0.05 per share to settle amounts owing to the Lender for principal, interest and bonus shares. The issuance of shares is subject to approval by the TSX Venture Exchange. The shares will be subject to a four month and one day hold.
This news release includes certain forward-looking information or forward-looking statements (collectively, "Forward-Looking Information") for the purposes of applicable securities laws. Forward-Looking Information includes, but is not limited to, statements with respect to the Loan and the repayment thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as "will", "plans" or "expects". These statements address future events and conditions and, as such, involve known and unknown risk, uncertainties and other factors, which may cause the actual results to differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, regulatory approvals and availability of capital. In making the forward-looking statements, the Company has applied several material assumptions, including, but not limited to, the assumptions that the Company will obtain regulatory approval. Although the Company has attempted to identify important factors that could affect the Company and may cause actual events to differ materially from those described herein, there may be other factors that cause events not to be as anticipated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.