Lincoln Mining has secured a $66,000 loan to fund its working capital requirements from Eros Resource, a company that has an insider in common with Lincoln.
The Loan is secured by the Company’s US properties and evidenced by a promissory note bearing interest at 6% per annum. The Company may prepay the principal, in whole or in part, at any time without penalty.
Principal and accrued interest will be payable upon termination of the Note on December 31, 2015.
As Eros and Lincoln have an insider in common, the Loan constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions.
The Company relied upon the applicable exemptions under MI 61-101 from the formal valuation and minority shareholder approval requirements in relation to the Loan.