Silver Predator has arranged for a US$275,000 loan from Resource Re to fund its working capital requirements.
The loan is secured by the assets of the Company and bears interest at 12% per annum. The loan is due December 31, 2015. The Company may prepay the principal, in whole or in part, at any time without penalty prior to maturity.
Resource Re Ltd., a wholly owned subsidiary of Till Capital Ltd., owns 71.65% of the Company’s outstanding common shares. The loan is a related party transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The Company is relying on the exemption from the formal valuation requirement in section 5.5(b) of MI 61-101 and the exemption from the minority approval requirement in section in section 5.7(a) of MI 61-101.