Los Andes Copper Announces Election to Issue Common Shares in Satisfaction of US$14 Million Convertible Debenture Interest Payment Obligations

Executive Summary

• Los Andes Copper Ltd. elected to settle accrued interest on three prior convertible debentures by issuing 8,493 common shares to Queen’s Road Capital at a deemed price of US $12.36 per share.
• The settlement covers US $104,973 (C$142,852) of interest owed on the debentures issued on June 2 2021, April 4 2022 and September 2 2022.
• The issuance is subject to TSX‑V approval and other conditions set out in the convertible debenture agreements.

Key Details

• Convertible Debentures: US $5 M (June 2 2021), US $4 M (April 4 2022) and US $5 M (September 2 2022) 8% convertible debentures issued to Queen’s Road Capital.
• Interest Owed: Total interest payable in cash and shares amounted to US $104,973 (C$142,852).
• Share Issuance: 8,493 common shares issued at a deemed price of US $12.36 per share (C$16.82).
• Payment Structure: Under the debenture terms, interest is payable quarterly – 5% in cash and 3% in shares – based on the greater of the 20‑day VWAP prior to payment or the Discounted Market Price as defined by TSX‑V policies.
• Approvals Required: Completion of the share issuance requires receipt of all requisite approvals, including TSX‑V approval.
• Counterparty: Queen’s Road Capital Investment Ltd., a resource‑focused investment firm listed on the TSX (ticker: QRC).

Notable Quotes

(No executive quotes were included in the release.)