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VANCOUVER, Feb. 28, 2019 /CNW/ - Filo Mining Corp.
(TSX-V, Nasdaq First North: FIL) ("Filo Mining", or the "Company") is pleased to announce that it has entered into a new
US$5,000,000 credit facility (the "New Facility"), which will be evidenced by a debenture
(the "New Debenture"), to provide additional financial flexibility to fund the Company's ongoing work programs and provide
general working capital. The New Facility has a term of 12 months ending February 28, 2020
(the "Maturity Date"). No interest is payable during the term of the New Debenture, however, any amount of the New
Facility remaining unpaid and outstanding on or after the Maturity Date shall bear interest at a rate of 5.00% per annum until
repaid in full.
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Release
The New Facility has been issued by Zebra Holdings and Investments S.à.r.l. (the "Lender"), a company controlled by a
trust settled by the late Adolf H. Lundin, and an insider of the Company. The terms of the New
Facility include the Company issuing to the Lender, subject to approval of the TSX Venture Exchange, an aggregate of 6,000 common
shares of Filo (the "Common Shares") and an additional 300 Common Shares per month for each US$50,000 of the New Facility outstanding from time to time up to the Maturity Date. All securities issued in
conjunction with the Facility will be subject to a four-month hold period under applicable securities law.
The New Facility supplements an existing US$5,000,000 credit facility provided by the Lender,
evidenced by an existing debenture dated as of January 12, 2019, which matures on July 12, 2020.
The Common Shares to be issued pursuant to the terms of the New Debenture will be issued at a deemed price of CA$2.20 per
share.
The issuance of Common Shares to an insider and the entering into of the Debenture each constitute a "related party
transaction", as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transactions will be exempt from the
formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any shares
issued to, or the consideration paid for, the Debenture will exceed 25% of the Company's market capitalization.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in
the U.S., or in any jurisdiction in which such an offer or sale would be unlawful. The securities described herein have not been
and will not be registered under the U.S. Securities Act of 1933, as amended, or any U.S. state securities laws and may not be
offered or sold in the U.S. or to the account or benefit of a U.S. person or a person in the U.S. absent registration or an
applicable exemption from the registration requirements.
About Filo Mining
Filo Mining is a Canadian mineral mining company focussed on advancing the Company's key project, Filo del Sol. The Company's
shares are listed on the TSX-V and on Nasdaq First North under the symbol "FIL". Filo Mining is a member of the Lundin Group of
Companies.
The Company's focus is advancing development of its 100% owned Filo del Sol copper/gold deposit located in Chile's Region III and adjacent San Juan Province, Argentina.
Additional Information
The Company's certified advisor on Nasdaq First North Stockholm is Pareto Securities AB, +46 8 402 50
00, certifiedadviser.se@paretosec.com.
This information is information that Filo Mining Corp. is obliged to make public pursuant to the EU Market Abuse
Regulation. The information was submitted for publication, through the agency of the contact person set out below, on
February 28, 2019 at 4:30 p.m. Pacific Time.
On behalf of the board
Adam Lundin,
President and CEO
Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein in the news release constitutes "forward-looking information" and
"forward-looking statements" within the meaning of applicable securities legislation (collectively, "forward-looking
information"). The forward-looking information contained in this news release is based on information available to the Company as
of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and
does not assume any obligation, to update this forward-looking information. Generally, this forward-looking information can
frequently, but not always, be identified by use of forward-looking terminology such as "plans", "expects" or "does not expect",
"is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or statements that certain actions, events, conditions or results "will", "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved" or the negative connotations thereof. All statements other than
statements of historical fact may be forward-looking statements.
Forward-looking statements contained in this news release include statements regarding the anticipated use of proceed from the
Facility, the ability of the Company to satisfy the conditions of the Debenture including repayment of the Facility upon its
maturity and the issuance of shares thereunder, and the timing and success in obtaining requisite regulatory approvals.
Although Filo Mining believes that the expectations reflected in such forward-looking statements and/or information are
reasonable, undue reliance should not be placed on forward-looking statements since Filo Mining can give no assurance that such
expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may
cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the
risks, uncertainties and other factors identified in Filo's periodic filings with Canadian securities regulators, including the
Company's Annual Information Form available under the Company's profile at www.sedar.com.
The forward-looking statements contained in this news release are made as at the date of this news release and Filo does not
undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of
additional information, future events and/or otherwise, except as may be required by applicable securities laws.
Forward-looking information is provided for the purpose of providing information about management's current expectations and
plans and allowing investors and others to get a better understanding of the Company's operating environment. Forward-looking
information is based on certain assumptions that the Company believes are reasonable, including that the current price of and
demand for commodities will be sustained or will improve, the supply of commodities will remain stable, that the general business
and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on
reasonable terms and that the Company will not experience any material labour dispute, accident, or failure of plant or
equipment. These factors are not, and should not be construed as being, exhaustive. Although the Company has attempted to
identify important factors that would cause actual results to differ materially from those contained in forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no
assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. All of the forward-looking information contained in this document is qualified by these
cautionary statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent
uncertainty thereof.
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.
SOURCE Filo Mining Corp.
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