McFarlane redeems part of debentures after asset sale

Executive Summary

• McFarlane Lake Mining Ltd. has announced the partial redemption of $2,344,469 (U.S.) of its $15-million (U.S.) aggregate principal amount of 15% senior secured debentures.
• The redemption was funded using 50% of the net cash proceeds from the permitted asset sale of the West Hawk Lake and High Lake properties, which closed on October 28, 2025.
• The redemption was executed early with the consent of a majority of debenture holders, waiving the standard 60-day notice requirement, with a redemption price of approximately $167.92 (U.S.) per $1,000 principal amount.

Key Details

• Debenture Details:
  • Instrument: 15% Senior Secured Debentures maturing October 26, 2026.
  • Total Aggregate Principal: $15,000,000 (U.S.).
  • Amount Redeemed: $2,344,469 (U.S.).
  • Redemption Date: November 11, 2025.
  • Trustee: Odyssey Trust Company.
  • Indenture Date: September 29, 2025.
• Redemption Terms:
  • Redemption Price: Approximately $167.92 (U.S.) per $1,000 (U.S.) principal amount.
  • Price Composition: $156.30 (U.S.) principal repayment plus all accrued and unpaid interest to the redemption date, inclusive of the early repayment premium.
  • Notice Waiver: The 60-day notice requirement was waived by a majority of holders on October 24, 2025.
• Funding Source:
  • Asset Sale: Sale of West Hawk Lake and High Lake properties.
  • Sale Closing Date: October 28, 2025.
  • Indenture Requirement: At least 50% of net cash proceeds from the sale of secured assets must be applied to redeem debentures.
  • Application of Funds: The $2,344,469 (U.S.) redemption amount represents exactly 50% of the net cash proceeds from the West Hawk Lake and High Lake sale.
• Administrative Instructions:
  • Holders must surrender debentures to the trustee at 1230, 300-5th Ave. SW, Calgary, Alta., T2P 3C, attention: Corporate Trust.
  • Payment is made in cash upon presentation and surrender of the debentures.

Notable Quotes

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