Lions Bay announces new loan facility and board change

VANCOUVER, March 15, 2018 /CNW/ - Lions Bay Capital Inc. (TSX-V: LBI) ("Lions Bay" or "the Company") is pleased to announce that Lions Bay has entered into a loan agreement arranged by Riverfort Global Capital Ltd. on behalf of Cuart Investments PCC Ltd. (the "Lender") for a secured loan facility to be drawn in tranches up to an aggregate loan amount of $5,000,000.  The initial tranche drawdown will be $1,000,000.  The proceeds of this loan will initially be used by the Company for its support in restructuring Montan Mining Corp. as announced on February 21, 2018.  The remainder of the loan facility will also be available to support other investments that may be made by Lions Bay.

The initial tranche has a term of one year and all subsequent tranches shall mature on a date that is 12 months after the advance of such subsequent tranche, with the intital tranche of $1,000,000  being repayable within one year in installments of $250,000 plus accrued and outstanding interest 120 days from the initial advance, $150,000 plus accrued and outstanding interest 180 days from the initial advance, $250,000 plus accrued and outstanding interest 270 days from the initial advance and the remaining balance plus any accrued and outstanding interest twelve months from the initial advance.  The loan bears interest at 12% per annum and is subject to implementation fees of 5% on each advance and a commitment fee of $25,000.  The loan is secured by a guarantee from the Company's wholly owned subsidiary, Pan Andean Capital Pty Ltd. ("Pan Andean") and a pledge by Pan Andean of certain of the investments held by Pan Andean.

Subject to approval of the TSXV, upon each advance under the loan facility the Company will also issue warrants to the Lender exercisable into such number of common shares of the Company equal to 45% of the advance divided by the applicable Market Price (as defined in the TSXV rules) relating to such advance.

In addition, Lions Bay is pleased to announce that Mr. Gordon Fretwell has joined the board of the Company.  Concurrently, Mr. John Newton has resigned as a director of the Company in order to focus on his other business activities.  The Company thanks Mr. Newton for his support in the establishment of Lions Bay through the Qualifying Transaction completed last year.

About Lions Bay Capital Inc.

Lions Bay Capital Inc. is a TSXV-listed Investment Issuer that is focussed on high return investment opportunities, principally in the mining, clean energy and clean technology sectors, where it will provide public and private companies early-stage financial support by way of equity or debt.

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 NEWS RELEASE.

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation.  Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company.  Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "will", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing Lions Bay and other forward-looking statements are discussed in Lions Bay's Management's Discussion and Analysis which is available under the Company's profile on www.sedar.com. 

Forward-looking statements are based on assumptions made by and information currently available to the Company.  Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.  By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements.  These factors include, for the Company and the companies it is invested in, but are not limited to, commodity prices, fluctuations in revenues and expenses, need for additional funding, availability of such additional funding and that funding will be on acceptable terms, retention of key employees, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.

The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Lions Bay Capital Inc.