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Josemaria Announces New Credit Facilities

VANCOUVER, May 25, 2020 /CNW/ -A Josemaria Resources Inc. ("Josemaria" or the "Company") (TSX: JOSE) (Nasdaq Stockholm: JOSE) is pleased to announce that it has entered into two credit facilities totaling US$7,000,000 (collectively the "Facilities"), one with Lorito Holdings S.A .r.l. ("Lorito") for US$3,500,000 (the "Lorito Facility") and one with Zebra Holdings and Investments S.A .r.l. ("Zebra") for US$3,500,000 (the "Zebra Facility").A  Lorito and Zebra, who report their security holdings as joint actors, are insiders of the company and are private corporations controlled by a trust settled by the late Adolf H. Lundin. View PDF.Each of the Lorito Facility and the Zebra Facility will be evidenced by a debenture (collectively the "Debentures") each of which will be unsecured and will have a term of 18 months ending November 25, 2021 (the "Maturity Date"). No interest is payable during the term of the Debentures, however, any amount of the Lorito Facility or the Zebra 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. Commenting on the new credit facilities, CEO Adam Lundin stated, "We appreciate the continued financial support of our largest shareholders who remain committed to advancing the Josemaria Project towards being ready for eventual construction. The new credit facilities will allow us to complete the Feasibility Study during the second half of 2020 and to submit the ESIA shortly thereafter. We continue to be excited by the large copper and gold profile of the Josemaria deposit and look forward to sharing the results of the FS later this year."Proceeds from the Facilities will be used to provide additional financial flexibility to fund the Company's ongoing work programs and provide general working capital.Subject to approval of the Toronto Stock Exchange (the "TSX"), the terms of the Facilities include the Company issuing 16,500 common shares to each of Lorito and Zebra for an aggregate of 33,000 common shares of Josemaria (the "Common Shares") and an additional 920 Common Shares per month for each US$50,000 of the Lorito Facility or the Zebra Facility outstanding from time to time up to the Maturity Date.A  All securities issued in conjunction with the Facilities will be subject to a four-month hold period under applicable securities law.
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