Gold X Mining Announces Early Conversion of US$19.75 Million Secured Convertible Debentures and Retirement of All Outstanding Debt
Gold X Mining Corp. (TSX.V: GLDX, OTCQX: SSPXF) (“Gold X” or the “Company”) is pleased to announce the early retirement of 100% of its US$20 million convertible debenture issued December 3, 2019, 28 months prior to maturity. This was achieved through the conversion of US$19.75 million principal amount of debentures into Common Shares at C$3.20 per share. The Company expects to repay the remaining outstanding balance of US$250,000, or convert this amount into Gold X shares, by July 24, 2020.
Paul Matysek, CEO commented, “The early conversion of our debt is a testament to the commitment our partners and shareholders bring to advancing Gold X’s flagship Toroparu project towards a production decision. We would like to thank Wheaton Precious Metals and Gran Colombia Gold for their continued support. The retirement of all debt significantly strengthens the Company’s balance sheet.”
Following the final settlement of the remaining outstanding balance, the Company will become debt free. 8,373,376 Gold X shares are being issued by the Company to satisfy the conversion of the US$19.75 million principal amount. Subject to TSX Venture Exchange approval, the Company also plans to settle all accrued interest by issuing approximately 500,000 Gold X shares. Following these conversions, Gran Columbian Gold Corp. will hold 20.18% of the issued and outstanding Gold X shares. Also, the Company is pleased to welcome Wheaton Precious Metals Corp., parent company to Wheaton Precious Metals International Ltd., as a 9.49% shareholder of Gold X.
The outstanding principal amount of each Debenture and accrued interest has been converted at the option of the Debenture holder. The principal amount will be converted into the number of Gold X shares equal to the quotient of such amount converted to Canadian dollars using the daily representative rate of exchange as published by the Bank of Canada on the business day prior to conversion divided by the conversion price, being CAD$3.20, in accordance with the terms of the Debentures. The accrued interest will be converted at a market price, expected to be equal to the weighted average of the trading price of the Company’s shares for the prior 20 trading days, or at such other market price as approved by the TSXV.
On behalf of the Board of Directors of Gold X Mining Corp.
“Paul Matysek”
Director and Chief Executive Officer
About Gold X Mining Corp. Ltd.
Gold X Mining Corp. is a Canadian junior mining company developing the Toroparu Gold Project in Guyana, South America. Gold X has spent more than US$150 million on the Project to date to both classify 7.35 million ounces of Measured and Indicated and 3.15 M-oz of Inferred Gold Resources1, develop engineering studies for use in a feasibility study, and define a number of exploration targets around Toroparu on its 53,844 hectare (538 km2) 100% owned Upper Puruni Concession.
A Preliminary Economic Assessment study (Preliminary Economic Assessment Report, Toroparu Gold Project, Upper Puruni River Area, Guyana, dated July 18, 2019 completed by SRK Consulting (U.S.), Inc.) (the “Technical Report”) Gold defined a 5.02 M-oz Potentially Mineable Gold Resource producing 188 thousand ounces of gold per year over a 24-year mine-life. The Technical Report is available on SEDAR (www.sedar.com) and on the Company’s website (www.goldxmining.com).
