Prism Resources Inc. Enters into Secured Loan Agreements with Certain Shareholders Involving Issuance of Bonus Shares
214 – 3540 West 41st Avenue, Vancouver, British Columbia, V6N 3E6 PHONE: (604) 803-4883 Fax: (604) 682-6318
Trading Symbol: TSX-V: PRS
NEWS RELEASE
PRISM RESOURCES INC. ENTERS INTO SECURED LOAN AGREEMENTS WITH CERTAIN SHAREHOLDERS INVOLVING ISSUANCE OF BONUS SHARES
Vancouver, B.C. – February 22, 2018 – Prism Resources Inc. (TSX.V: PRS) (the “Company”) intends to enter into loan agreements (the “Loan Agreements”) with certain shareholders, including certain directors of the Company (the “Lenders”). The loans granted pursuant to the Loan Agreements total $100,000, with each of the Lenders loaning $30,000 to the Company, with the exception of Scott Ross, who is loaning $10,000 (the “Loans”). The Loans are secured against all or substantially all of the assets of the Company, as outlined in a general security agreement corresponding to the Loan Agreements.
Pursuant to the Loan Agreements, the Company intends to issue bonus shares of the Company to the Lenders (the “Bonus Shares”). Upon repayment of each Loan, the corresponding Lender shall receive the Bonus Shares, calculated as the number of common shares in the capital of the Company equal to 20% of such Lender’s Loan divided by the market price of such shares at the end of day on February 22, 2018. The Bonus Shares will thus have an aggregate value of $20,000.
Prism proposes to service and repay the Loans through future equity financings. Prism will use the funds from the Loans to pay legal costs, satisfy contract obligations and pay for upcoming audit and compliance costs.
Issuance of the Bonus Shares is subject to TSX Venture Exchange acceptance.
About Prism Resources Inc.
Prism acquired the Huampar project from Trevali Mining Corporation (TSX:TV) and Nueva Condor, a private Peruvian mining company, in July of 2016. Our priority has been to establish good community relations and agreements which are in process. More recently our focus has been for the reconstruction of the mine models and organization of the databases in anticipation of a program designed to examine the reactivation of mining production. The mining rate will be determined based on the economics provided by the current study. To that end, JDS of Mining & Energy have been contracted to carry out a PEA on the Huampar reactivation project.
ON BEHALF OF THE BOARD OF DIRECTORS PRISM RESOURCES INC.
Scott M. Ross President For more information contact:
Robert (Bob) Baxter Prism Resources Inc.
+1-778-928-1864 Email: [email protected]
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Scott M. Ross Prism Resources Inc.
604-803-4883 Email: [email protected]
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