Kutcho Copper Defers Interest on Wheaton Debenture
VANCOUVER, British Columbia, June 30, 2021 (GLOBE NEWSWIRE) — Kutcho Copper Corp. (TSXV: KC) (OTC: KCCFF) (“Kutcho Copper” or the “Company”) is pleased to announce that it has agreed to an interest deferral with Wheaton Precious Metals Corp. (“Wheaton”) in conjunction with the amendment of Wheaton’s $20 million convertible debenture originally issued on December 14, 2017. The current amendment effects an interest deferral to December 31, 2023.
Vince Sorace, President and CEO of Kutcho Copper states, “Wheaton continues to show their support for the Kutcho project by allowing us to defer interest payments due under the convertible debenture until the end of 2023. The Company appreciates their commitment and validation to this great project as we move towards completion of our feasibility study.”
Wheaton currently holds approximately 7.4% of the Company’s outstanding common shares with the potential to own up to 27% of the Company’s common shares on non-fully diluted basis if it exercised certain convertible securities (including the convertible debenture). Accordingly, the debenture amendment may be considered to be a related party transaction under Multilateral Instrument 61-101, but is exempt from the valuation requirements of MI 61-101 because Kutcho Copper is listed on the TSX Venture Exchange (subsection 5.5(b) of MI 61-101) and the minority shareholder approval requirements because the debenture amendment has a fair market value that is not more than 25% of Kutcho Copper’s market capitalization (subsection 5.7(a) of MI 61-101).
President & CEO, Kutcho Copper Corp.
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