McFarlane Lake Announces Partial Redemption of Senior Secured Debentures Following Sale of West Hawk Lake and High Lake

Executive Summary

• McFarlane Lake Mining Limited redeemed US$2,344,469 of its 15% senior secured debentures (original principal US$15 million) on November 11 2025.
• The redemption represents 50 % of the net cash proceeds from the October 28 2025 sale of the West Hawk Lake and High Lake assets, as required by the trust indenture.
• Holders will receive a redemption price of approximately US$167.92 per US$1,000 principal (US$156.30 plus accrued interest and early‑repayment premium).

Key Details

• Trust Indenture: Original agreement dated September 29 2025 with Odyssey Trust Company as Trustee.
• Redemption Notice: Submitted on November 11 2025 after majority holder consent waived the 60‑day notice requirement (consent obtained October 24 2025).
• Amount Redeemed: US$2,344,469 of the total US$15,000,000 aggregate principal amount of the 15% senior secured debentures maturing October 26 2026.
• Redemption Price per $1,000 Principal: Approximately US$167.92, broken down as:
• US$156.30 (principal component)
• Accrued and unpaid interest up to but excluding the redemption date
• Early repayment premium required by the indenture.
• Source of Funds: The redemption amount equals 50 % of net cash proceeds from the West Hawk Lake and High Lake asset sale, which is classified as a “Permitted Asset Sale” under the indenture.
• Payment Procedure: Redemption price payable in cash upon presentation and surrender of debentures to the Trustee at #1230, 300 – 5th Avenue SW, Calgary, Alberta, T2P 3C (Attention: Corporate Trust).
• Impact on Capital Structure: Reduces outstanding senior secured debt by ~15.6 % of original principal, improving liquidity and potentially lowering financing costs.

Notable Quotes

(No executive quotes were included in the release.)