RE:RE:RE:RE:RE:RE:Informal Presentation Q&ACame across this from my files, could this be our problem?
Debt Conversion Agreement between Meridian and Sentient • $10,500,000 (CAD $14,896,350) will be converted to common shares at a share price of CAD $2.50, subject to the following terms: • Company will need to complete an Equity Raise of CAD $2,500,000 at a subscription price of not less than CAD $0.05 per share; • Equity Raise is required to close by July 30, 2020 (“Closing Date”) • SGRFIV will not dispose any of the shares subscribed under this agreement for a period of 12 months from the Equity Raise Closing Date, subject to certain exceptions • In the event the Company completes a sale transaction within three years for an aggregate amount of at least $50,000,000, Sentient is entitled to a cash payment of up to $17,500,000, subject to reduction in certain situations including the sale of shares by Sentient.
Consolidated Facility Agreement between Meridian and Sentient • Consolidation $10,343,397 (CAD $14,674,177), including principal and interest, into a Consolidated Facility Agreement with a maturity date at March 31, 2022 at 0% interest. • The Company has the option to convert the outstanding amount into common shares of the Company at a fixed conversion price of CAD $2.50 per share at any time after: • the Company has raised in excess of CAD $7,093,500 of equity proceeds since the Closing Date defined in the Debt Conversion Agreement mentioned above; or • the second anniversary of the date of execution of the Debt Conversion Agreement listed above
Management’s Discussion and Analysis
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• The Consolidated Facility Agreement will be secured against certain inter-company loans between Meridian and its subsidiary Jaburi and all the shares of Jaburi.
Royalty Purchase and Debt Settlement Agreement and Net Smelter Royalty Agreement between Cancana and Sentient • Conversion of $3,166,027 (CAD $4,491,643) loan into a 2% net smelter returns royalty (“Royalty”) over the following projects: • 2% on Espigo polymetallic; • 2% Mirante da Serra manganese; • 2% Ariquemes tin; and • 100% of the royalty on each project can be bought back for $2,000,000 for each project or $6,000,000 for all 3 projects. • Certain conditions and restrictions apply to be followed by Jaburi and Cancana regarding the title maintenance and assignment of the projects contemplated in the Royalty Agreement