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Aurcana Corporation Announces Court Approval of Restructuring Transaction

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basserdan Member Level  Thursday, 11/19/15 10:33:19 AM
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Aurcana Corporation Announces Court Approval of Restructuring Transaction

Aurcana Corp (AUN.V)

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 16, 2015) - Aurcana Corporation (TSX VENTURE:AUN; OTC:AUNFF) (the "Company" or "Aurcana") announces that on Friday, November 13, 2015, the Ontario Superior Court of Justice (the "Court") approved the restructuring transaction previously announced by the Company on October 16, 2015 (the "Restructuring Transaction") under which all of the Company's debt obligations to Orion Mine Finance (Master) Fund I L.P. (the "Lender"), as lender under the Company's amended and restated senior secured credit facility dated April 29, 2014 (the "Facility"), will be extinguished pursuant to proceedings under the Canada Business Corporations Act (the "CBCA Proceedings") commenced and announced by the Company on October 30, 2015.

As announced in the Company's news releases dated October 16, 2015 and October 30, 2015, the Restructuring Transaction has the following key elements:

all of the debt obligations due and in default under the Facility will be exchanged for the Company's interests in its Mexican subsidiaries that own the La Negra mine, resulting in the elimination of approximately US$38.7 million of principal amount of secured debt due and in default under the Facility on completion of the Restructuring Transaction;

the Company's annual interest costs will be reduced by approximately US$2.3 million;

a newly incorporated affiliate of the Lender ("Newco") will purchase certain non-core equipment from Aurcana and certain of its subsidiaries for a total purchase price of US$3.5 million;

Newco will pay Aurcana US$40,000 per month for a total period of 12 months for certain consulting services to be provided to Newco by specified officers of Aurcana in connection with the operation of the La Negra mine; and

the Company will retain all of its other assets, including the Shafter mine, with no dilution to shareholders.

Aurcana's trade creditors, as well as its obligations to employees, are unaffected by the Restructuring Transaction and will continue to be paid or satisfied in the ordinary course of business.

The Restructuring Transaction will be implemented by way of the Plan of Arrangement that was approved by the Court on November 13, 2015 in the CBCA Proceedings, and is subject to the receipt of all necessary regulatory and stock exchange approvals. The Restructuring Transaction is expected to be implemented on or before December 4, 2015.

About Aurcana Corporation

Aurcana Corporation is a primary silver producing company with two properties: the La Negra Mine in Mexico and the Shafter Silver Project in Texas, US. The latter was put on care and maintenance in December 2013, in part due to depressed silver prices.


Kevin Drover, President & CEO

For further information, visit the website at http://www.aurcana.com

Contact Information:
Aurcana Corporation
Phone: (604) 331-9333
Toll Free: (866) 532-9333
(604) 633-9179 (FAX)


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