Latin American Minerals has secured a $200,000 loan for general working capital to address a short-term deficiency.
In addition, a company insider has advanced $100,000. That loan constitutes a “related party transaction” as defined under Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions.
A material change report in respect of the related party transaction was not filed at least 21 days in advance of the closing of financing due to the company’s need to address a short-term working capital deficiency.
The $100,000 advance is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as the loan was obtained on reasonable commercial terms that are not less advantageous to the company than if the loan were obtained from a person dealing at arm’s length with the company, and the loan is not convertible into or repayable in equity or voting securities.
At an annual interest rate of 12 percent interest, both notes will mature in August 2016.
Latin American Minerals is a mineral exploration company holding multiple gold and diamond properties in Paraguay.
The company also announced that Basil Roy Botha and Michael Ernle Hepworth are on its board of directors.
