Los Andes Copper Announces Conversion of US$5 Million Convertible Debenture

Executive Summary

• Queen’s Road Capital Investment Ltd. is converting its US$5,000,000 (CAD $6,909,366) eight‑percent convertible debenture into common shares of Los Andes Copper Ltd. effective April 8, 2026.
• The conversion will initially issue 558,502 shares (the maximum allowed without additional TSX‑V approval) and the Company will seek TSX‑V consent to convert the remaining CAD $866,375 into an additional 80,071 shares, for a total of 638,573 new common shares.
• The conversion reduces outstanding debt and increases equity, potentially improving the Company’s balance sheet while diluting existing shareholders.

Key Details

• Convertible Debenture: US$5,000,000 eight percent debenture issued June 2, 2021; principal plus accrued interest to conversion date = US$5,043,333.
• Conversion Amount (CAD): CAD $6,909,366 (using US$1 = CAD 1.37).
• Conversion Price: CAD $10.82 per common share.
• Initial Share Issuance: 558,502 shares (maximum allowed without further TSX‑V approval), representing CAD $6,042,991 of the conversion amount.
• Additional Shares Requested: Application to TSX‑V for approval to convert the remaining CAD $866,375 into 80,071 shares at CAD $10.82 per share.
• Total Shares on Conversion: 638,573 common shares to be issued upon full conversion.
• Impact on Capital Structure: Debt of US$5.043 M (≈CAD $6.91 M) will be eliminated; equity will increase by ~0.64 million shares, diluting existing shareholders but strengthening the balance sheet.

Notable Quotes

(No direct quotes were provided in the release.)