Oceanic Announces Launch of Non-Brokered Convertible Debenture Financing

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Oceanic Announces Launch of Non-Brokered Convertible Debenture Financing

by ahnationtalk on February 25, 202118 Views

Vancouver, BC – Oceanic Iron Ore Corp. (TSX-V: FEO) (“Oceanic”, or the “Company”) is pleased to announce a non-brokered financing in an aggregate amount of up to $1,400,000 (the “Financing”).

The subscribers to the Financing will be issued convertible debentures (the “Debentures”) which will earn interest at a rate of 8.5% per annum over a 60 month term (the “Term”), payable quarterly.

The principal amount of the Debentures will be convertible to Units (“Unit”) during the Term at the election of the subscriber at a price of $0.19 per Unit. Each Unit will consist of 1 common share of the Company and 1 share purchase warrant of the Company, with each whole warrant entitling the holder to purchase one common share of the Company at a price of $0.19 per common share for a period of 5 years after closing.

The Debentures will be secured with a first ranking charge at any time against the assets of the Company, ranking pari-passu with the current secured debenture holders.

The Company intends to use the proceeds of the Financing for ongoing negotiations with potential strategic partners, general claims maintenance, and corporate and working capital purposes.

The Financing is subject to acceptance for filing by the TSX Venture Exchange.

Completion of Previous Settlement of Advance Royalty Payments

The Company has closed on a settlement arrangement, originally announced on December 2, 2020, in respect of certain advance royalty payments with one of its Hopes Advance royalty holders (the “Settlement”).

The Company reached agreement with 154619 Canada Inc. (“154619”) in respect of its 2018 and 2019 advance royalty payments of $200,000 through the issuance of 1,131,221 common shares at a price of $0.1768 per share, and settlement of the 2020 advance royalty payment has been deferred to a date being on or before November 30, 2021, whereby the Company has the election to settle such payments either by cash payment or by way of issuance of common shares of the Company at a deemed price per share equal to the volume weighted average trading price of the Company’s common shares on the TSX Venture Exchange for the 20 trading days ending on November 26, 2021.

The Settlement with 154619 was approved by the TSX Venture Exchange. The common shares issued in connection with the Settlement are subject to the statutory four-month hold period from December 8, 2020.

The Company’s royalty holders are each entitled to annual advance royalty payments of $100,000 until the commencement of commercial production on the Company’s Hopes Advance Project. Advance royalty payments are deductible from actual royalty payments subsequent to the commencement of commercial production.

OCEANIC IRON ORE CORP. (www.oceanicironore.com)

On behalf of the Board of Directors

“Steven Dean”

Chairman

+604 566-9080

NT4

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