Los Andes to issue 80,071 shares to Queen's Road

Executive Summary

• Queen’s Road Capital Investment Ltd. exercised its conversion rights on a US$5 million, 8 % convertible debenture issued by Los Andes Copper Ltd., converting the debt into common shares at $10.82 per share.
• The conversion results in the issuance of up to 638,573 new common shares (558,502 approved without further TSX‑V consent plus an additional 80,071 pending approval).
• The total conversion amount equals US$5,043,333 (≈ CAD 6,909,366), representing a material equity infusion and reduction of outstanding debt.

Key Details

• Convertible Debenture: US$5 million 8 % debenture issued to Queen’s Road; principal plus accrued interest up to the conversion date totals US$5,043,333.
• Conversion Price: $10.82 per common share.
• Exchange Rate Used: US$1 = CAD 1.37 → conversion amount in Canadian dollars CAD 6,909,366.
• Shares Issuable Without Additional TSX‑V Approval: 558,502 common shares (representing CAD 6,042,991 of the conversion amount).
• Remaining Conversion Amount: CAD 866,375 to be converted into an additional 80,071 common shares pending TSX‑V approval.
• Total Potential Shares Issuable on Full Conversion: 638,573 common shares.
• Effective Date of Conversion Rights Exercise: April 8, 2026 (originally exercised by Queen’s Road on June 2, 2021).
• Impact: Converts debt to equity, reducing Los Andes’ leverage and increasing the shareholder base; no cash proceeds are generated, but the company’s balance sheet is materially improved.

Notable Quotes

(No direct quotes were provided in the release.)