04:30:52 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Falco Resources Ltd
Symbol FPC
Shares Issued 271,577,879
Close 2023-01-23 C$ 0.145
Market Cap C$ 39,378,792
Recent Sedar Documents

Falco Resources shareholders elect six directors at AGM

2023-01-24 09:57 ET - News Release

Mr. Luc Lessard reports

FALCO ANNOUNCES ELECTION OF DIRECTORS AND CLOSING OF ITS SENIOR DEBT TRANSACTIONS

The six nominees listed in the management information circular dated Dec. 12, 2022, have been elected as directors of Falco Resources Ltd.

Detailed results of the vote for the election of directors held at the annual meeting of shareholders on Jan. 23, 2023, are set out in an attached table.

Appointment and remuneration of auditor

PricewaterhouseCoopers LLP was appointed as independent auditor of the corporation for the ensuing year (see an attached table).

Long-term incentive plan resolution

Shareholders approved the ordinary resolution with respect to the approval of the corporation's existing rolling 10-per-cent long-term incentive plan and amendments thereto. The results are provided in an attached table.

Osisko Gold Royalties Ltd. amendments resolution

The majority of the disinterested shareholders approved the ordinary resolution with respect to amending the corporation's existing convertible secured senior loan with Osisko Gold Royalties and the issuance of 10,664,324 warrants of the corporation to Osisko, each exercisable for one common share of Falco at an exercise price of 65 cents and expiring on Dec. 31, 2024. The results are provided in an attached table.

Closing of senior debt transactions

The transactions previously announced on Dec. 6, 2022, with each of Osisko and Glencore Canada Corp. successfully closed on the date hereof.

Extension of the maturity date of the Osisko loan

In consideration for the extension of the maturity date of the Osisko loan, the Osisko loan has been amended: (i) in order for the accrued interest on the existing Osisko loan to be capitalized such that the principal amount of the amended Osisko loan is now $20,484,195; (ii) to increase the interest rate of the Osisko loan from 7 per cent per year to 8 per cent per year; and (iii) to reduce the conversion price of the Osisko loan from 55 cents to 50 cents per common share. In addition, the 10,664,324 warrants of the corporation previously held by Osisko, each exercisable for one common share at an exercise price of 69 cents and which expired on Nov. 27, 2022, have been replaced with 10,664,324 warrants of the corporation, each exercisable for one common share at an exercise price of 65 cents and expiring on Dec. 31, 2024, maturing concurrently with the Osisko loan, as amended.

Extension of the maturity date of the Glencore debenture

In consideration for the extension of the maturity date of the corporation's existing senior secured convertible debenture held by Glencore, the Glencore debenture has been amended: (i) in order for the accrued interest on the existing Glencore debenture to be capitalized such that the principal amount of the amended Glencore debenture is now $11,770,710; (ii) to increase the interest rate of the Glencore debenture from 8 per cent per year to 9 per cent per year; and (iii) to reduce the conversion price of the Glencore debenture from 40 cents to 36 cents per common share. In addition, the 15,061,158 warrants of the corporation held by Glencore, each exercisable for one common share at an exercise price of 41 cents and expiring on April 27, 2023, have been amended to be exercisable at an exercise price of 38 cents and expiring on Dec. 31, 2024, maturing concurrently with the Glencore debenture, as amended.

The common shares issuable upon conversion of the Osisko loan and the Glencore debenture will be subject to a hold period of four months from the closing date (until May 25, 2023), in accordance with applicable Canadian securities laws. The Osisko warrants and the Glencore warrants (and the underlying common shares issuable pursuant thereto) will be subject to a hold period of four months from the date of issuance of the Osisko warrants and the Glencore warrants, in accordance with applicable Canadian securities laws.

About Falco Resources Ltd.

Falco Resources is one of the largest mineral claim holders in the province of Quebec, with extensive landholdings in the Abitibi greenstone belt. Falco owns approximately 70,000 hectares of land in the Noranda mining camp, which represent 70 per cent of the entire camp and include 13 former gold and base metal mine sites. Falco's principal asset is the Horne 5 project, located under the former Horne mine that was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. Osisko Development Corp. is Falco's largest shareholder, owning a 17.3-per-cent interest in the corporation.

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