PPX Mining Announces Conversion of Remaining US$2.4M Principal Amount of Convertible Debenture and Proposed Settlement of Interest Owed by a Shares for Debt Transaction

PPX Mining Corp. announced the conversion of the remaining US$2.43 million principal on secured convertible debentures held by RIVI Opportunity Fund LP into 60,832,433 common shares at a conversion price of US$0.04 per share. The company also entered into a "Shares for Debt Agreement" to settle US$653,357.88 in accrued and unpaid interest by issuing 5,993,342 common shares at a deemed price of C$0.165 per share.

Upon completion of these transactions, the convertible debenture will be fully extinguished. RIVI is expected to hold approximately 11.88% of the company's issued and outstanding common shares. The transaction constitutes a related party transaction under Multilateral Instrument 61-101, as RIVI's managing partner serves as a director of PPX.

The company intends to rely on exemptions from formal valuation and minority shareholder approval requirements, as the fair market value of shares issued does not exceed 25% of the company's market capitalization. TSX Venture Exchange approval is required, and issued shares carry a four-month and one-day statutory hold period.

PPX Mining Corp. (PPX) has successfully eliminated its remaining convertible debenture and accrued interest, marking a routine continuation of its debt restructuring strategy. The transaction removes an interest-bearing liability from the balance sheet, a move that reduces future cash outflows and aligns with management's stated goal of strengthening the financial position.

The conversion involved the issuance of approximately 66.8 million new shares, representing roughly 7.4% dilution to existing shareholders. The conversion price of US$0.04 is significantly below the current trading price, reflecting the distressed nature of the original instrument and the company's need to preserve cash.

While the related party nature of the transaction requires careful scrutiny, the use of standard regulatory exemptions is typical for such financings. The news does not introduce new capital; it merely reclassifies existing debt to equity. Therefore, it does not independently resolve the company's working capital deficiency or going concern flag.

PPX Mining Corp. is a gold and silver exploration and development company focused on the Igor Project in the La Libertad region of northern Peru. Its flagship asset is the Callanquitas Mine, an operating underground mine producing high-grade gold, silver, and copper mineralization.

The company is constructing a 350-tonne-per-day carbon-in-leach (CIL) and flotation processing plant at the Igor site, designed to process both oxide and sulfide ores. Exploration programs are active at Callanquitas East, Callanquitas West, and the Portachuelos project, targeting resource expansion and depth extensions.

PPX Mining Corp. transitioned to a cash-generating producer status in 2025, with record Net Profit Interest (NPI) figures reported throughout the year.