North Vancouver, British Columbia–(Newsfile Corp. – September 9, 2019) – Cascadero Copper Corporation (TSXV: CCD) (the “Company“) announces that Mr. Lorne Harder, the Company’s Chairman, President and CEO, has agreed to advance a loan to the Company in the principal amount of up to $35,000, which is in addition to $65,000 in principal that Mr. Harder had previously advanced to the Company in July 2019 to cover expenses incurred in respect of the Company’s mineral exploration properties in Argentina, as well as certain TSX Venture Exchange filing fees. The additional loan proceeds will be applied to cover certain taxes and ongoing administrative expenses.
The $65,000 previously advanced to the Company by Mr. Harder had been evidenced only in the Company’s accounting records, and the Board of Directors has determined that the entire principal loan amount of $100,000 shall now be evidenced by a non-interest bearing grid promissory note (the “Note“) that will mature and become due and payable on December 9, 2019. The Company’s obligations under the Note are secured by a pledge of 3,000,000 shares of Amarc Resources Ltd. beneficially owned by the Company in accordance with the terms of a pledge agreement among the Company, as pledger, Mr. Harder, as Pledgee, and McMillan LLP, as pledge agent. The Company may, at any time and from time to time, prepay all or any part of the amount owing to Mr. Harder under the Note without notice, penalty or bonus.
The secured loan evidenced by the Note constitutes a “related party transaction” as defined under Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions (“MI 61-101“). The transaction is exempt from the formal valuation and minority securityholder approval requirements of MI 61-101 as the fair market value of the common shares of Amarc Resources Ltd. pledged to secure the Company’s obligations under the Note does not exceed 25% of the Company’s market capitalization, calculated in accordance with MI 61-101. The loan transaction was unanimously approved by the directors of the Company entitled to vote thereon, which consisted of all directors of the Company except for Mr. Harder who abstained from voting.
For further information, please contact Greg Andrews, Director.
Cascadero Copper Corporation
#345, 108 West Third Street
North Vancouver, B.C.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release).
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/47657