Braveheart Resources enters loan conversion agreement with Matlock Farms


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Calgary, Alberta–(Newsfile Corp. – June 29, 2022) – Braveheart Resources Inc. (TSXV: BHT) (OTCQB: RIINF) (FSE: 2ZR) (“Brave heart“or the”Company“) is pleased to announce that the Company has entered into a Loan Conversion Agreement (the “OK“) with Matlock Farms Ltd. ( there ” Lender”). Braveheart and the Lender are parties to a Loan Agreement (the “Loan agreement“) dated January 19, 2019, as amended January 19, 2021, pursuant to which Braveheart borrowed a principal amount of $5,000,000 (the “Director“) of the Lender.

The parties have entered into this Agreement to amend the terms of the Loan Agreement to permit the conversion of principal plus accrued interest of approximately $500,000 into a 3% net smelter royalty (the “NSR“) on the Bull River Mine project near Cranbrook, British Columbia.

Highlights of the agreement include the following:

  1. The NSR will be capped at a maximum of $6,750,000 (the “Maximum NSR payout“). Braveheart will make semi-annual payments no later than June 30e and December 31st of each year of $150,000 as NSR prepayments and such payments will be deducted from and reduce the maximum NSR payment.
  1. Upon satisfaction of the maximum NSR payment, the royalty rate under the NSR will be reduced from 3% to 0.25%. The 0.25% NSR can be purchased by Braveheart at any time for $1,000,000.
  1. Upon execution of this Agreement, the obligations owed by Braveheart to the Lender under the Loan Agreement shall be paid in full and all other liabilities of Braveheart under the Loan Agreement shall be satisfied in full.

Ian Berzins, President and CEO, said: “We are extremely pleased to enter into this loan conversion agreement with Matlock Farms Ltd. Our balance sheet has improved significantly with the elimination of $5,500,000 of debt and the deal does not result in any stock dilution. The agreement enhances our ability to raise new capital to complete the restart of the Bull River mine project. The loan agreement was initially required to enable us to purchase the Bull River mine project. The company expects the maximum NSR payment to be made in the first four years of mine life.”

Aaron Matlock, the owner of the Lender, is a director and insider of the Company. The transaction constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101. Protection of holders of minority securities in special transactions (“MI 61-101The Company is relying on the exemptions provided in Section 5.5(b) and Section 5.7(1)(f) of the formal valuation and minority shareholder approval requirements of NI 61-101 The Company did not file a material change report in respect of the related party transaction at least 21 days prior to entering into the Agreement, as the Company wanted to improve its financial condition as quickly as possible.

About Braveheart Resources Inc.

Braveheart is a mining company with a primary focus on two near-lived copper producing assets in Canada. Braveheart’s principal asset is the 100% owned Bull River Mine project (>135 million pounds of copper) near Cranbrook, BC, which has a mineral resource containing copper, gold and silver. Braveheart’s latest acquisition is the 100% owned Thierry Mine project (>1,300 MM lbs copper) near Pickle Lake, Ontario, which has a mineral resource containing copper, nickel, silver, palladium , platinum and gold.

Contact information
Braveheart Resources Inc.
Ian Berzins
President and CEO
M: +1-403-512-8202
E : [email protected]

For more investor information, please contact Braveheart at:
Manish Grigo
Director, Corporate Development
M: +1-416-569-3292
E : [email protected]

Caution Regarding Forward-Looking Information

This press release contains certain information that may constitute “forward-looking information” under applicable Canadian securities laws. Forward-looking information includes, but is not limited to, statements about strategic plans, future work programs and objectives, and the expected results of those work programs. Forward-looking information necessarily involves known and unknown risks, including, without limitation, risks associated with general economic conditions; inability to access sufficient capital from internal and external sources and/or inability to access sufficient capital on favorable terms; and other risks.

Forward-looking information is necessarily based on a number of estimates and assumptions which, while believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results to differ. and future events differ materially from those expressed or implied. by this forward-looking information and the risks identified in the Company’s continuous information file. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based on the opinions and estimates of management and on information available to management as of the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.

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