LAS VEGAS--(BUSINESS WIRE)--Mission Mining Company (OTC Pink: MISM) is pleased to announce that it has completed a negotiation for, and has executed all contracts and agreements related to a major financing / capitalization of Mission Mining Company, which contracts and agreements provide Mission Mining Company with the right and / or ability to:
1. Be the named beneficiary on a bank instrument, which will be pledged as collateral for and as a guarantee of repayment of bonds to be issued by Mission Mining Company through a registered bond offering expected to be completed within the next 90 to 180 days. The face value of the bank instrument and of the total amount of bonds to be sold in the registered bond offering will be €125,000,000 (one hundred twenty-five million Euros), or approximately USD $172,500,000 (one hundred seventy-two million, five hundred thousand U.S. dollars) at the current Euro / Dollar exchange rate, which exchange rate can and does vary on a daily / hourly / minute-to-minute basis). Due to the collateral and guarantee provided by the bank instrument, the bonds to be issued will be investment grade / credit rated bonds, the exact terms and duration of which bonds have not yet been determined by Mission Mining Company, which has the sole authority to set the terms thereof.
2. The company which is providing the bank guarantee for Mission Mining Company has also agreed to make advances / loans to Mission Mining Company on a draw basis to pay for the costs and expenses associated with the bond offering and the marketing of the bonds, as well as funds which Mission Mining Company will use to initiate the permitting process on and development of the El Dorado Mine, which mine is held by Mission Mining Company as the operator / lessee under a long term lease which will be automatically extended, per the terms of the lease, for so long as the Mine is in production. These amounts / draws will be made available to Mission Mining Company during the third quarter of 2014 (between the first of July and the end of September). The amounts of the advances / loans have been agreed to be up to but not exceeding USD $10,000,000 (ten million U.S. dollars).
3. Additionally, the company which is providing the bank guarantee and the advances / loans to Mission Mining Company has also agreed to make additional investments in Mission Mining Company on a quarterly basis for three years, which Mission Mining Company will elect (as is permitted in the agreements) to have the quarterly funds received be treated as the purchase of preferred convertible, dividend paying stock of a new series of shares to be created by Mission Mining Company, wherein the same can be converted into the common shares of Mission Mining Company, at the option of the holder, only after ten (10) years, or at any time when Mission Mining Company “calls,” the preferred convertible shares and offers to redeem the same for cash, at which time the holder may elect to receive payment for the redemption of its preferred convertible shares in either cash or in the common shares of Mission Mining Company. The amount of the quarterly purchases of the preferred convertible, dividend paying stock will be €31,250,000 (thirty-one million, two hundred fifty thousand Euros) per quarter for three years (12 quarters).
4. The quarterly stock purchases made by Mission Mining Company’s investor will be used for, and will enable Mission Mining Company to:
a. -repay the amounts due to retire the advances / loans made to Mission Mining Company by the investor, and to redeem or retire the bonds issued or sold in the bond offering which will be made by Mission Mining Company at the maturity of the bonds, if and as necessary; and
b. -pay for fully permitting, developing, and operating both Mission Mining Company’s El Dorado Mine and its Gold Star Mine, including the construction and operation of the appropriate refining and processing facilities for both mines; and
c. -make acquisitions of other mining properties and technologies, and of related assets and related technologies; and
d. -pay the general operating expenses and overhead of Mission Mining Company as related to all of the above.
5. The company which is Mission Mining Company’s investor and contract counterparty in respect of the above referenced contracts and agreements, is a U.S. domiciled company which represents the U.S. interests of a foreign company / investor that holds and invests its own funds for its own account, and which is interested in acquiring significant investment positions in U.S. mining operations such as those controlled by Mission Mining Company. All contracts, agreements, and transactions related to the investor / investments described above have been reviewed for compliance purposes by legal counsel and so as to comply with all applicable disclosure requirements and / or anti-money laundering statutes.
This release may contain “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and of Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief, or current expectations of Mission Mining Company and members of its management, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include fluctuation of operating results, the ability to compete successfully in its market segment, and the ability to complete some or all of the before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes to future operating results.
Carlton Wingett – CEO
Phone – 888-459-4889