Ressources Appalaches Inc.: US $10 M Loan Financing Secured for Gold Production at Dufferin Mine

Ressources Appalaches (TSX VENTURE:APP) is pleased to announce the Closing of
its previously announced loan financing of US $10 M provided by New York based
Lascaux Resource Capital Partners, LLC. A first tranche ("Tranche A") of US $2.5
M, less fees and expenses, was advanced to the Company at Closing and the second
tranche ("Tranche B") of US $7.5 M will be advanced upon certain specific
conditions being satisfied, namely an updated technical report of the Dufferin
Mine including the detailed mine plan and obtaining the remaining production
approval with respect thereto within the next 9 months. 


Path to Production

The loan financing of US $10 M will provide sufficient funds to complete the
refurbishment of the Dufferin Mine and advance the project to gold production.
Start of commissioning is projected for 4 months after the funding of Tranche B,
with another 4 months of mining & milling ramp-up operations. 


The targeted first stage of production stands at 300 tonnes per day (TPD). This
targeted output was reviewed by MineTech International as part of the financing
due diligence process and is subject to the finalization of the mine plan. A NI
43-101 compliant feasibility study has not been completed and there is no
certainty the proposed operation will be economically viable.


Financing Details

The financing of US $10 M, is being made through an Ontario limited partnership
(the "Ontario LP"). The financing will bear interest at a rate of 8% per annum
starting the 9th month after Tranche B is advanced and is payable in cash. The
financing is amortized by the delivery of a total of 10,125 ounces of gold over
a period of 27 months starting the 9th month following the advance of Tranche B.
Prepaid interest of US $800,000 and structuring fees of US $300,000 are also
payable upon the advance of Tranche B. 


In consideration for the financing, the Company issued 1,000,000 shares to the
Ontario LP at Closing and will issue an additional 3,500,000 shares to the
Ontario LP upon the advance of Tranche B. 


The financing, which is secured by the Company's assets, will be used to resume
gold production at the Dufferin Mine project in Nova Scotia (see press releases
of November 28, 2012 and March 4, 2013).


The Company has entered into an off-take agreement with the Ontario LP for all
production from the Dufferin Mine on market based pricing. The Company will have
the option to buy back the off-take for US $2 M one year after the fulfillment
of the 10,125 ounces of gold deliveries. 


Axiom Capital Management Inc. a broker-dealer based in New York, is receiving a
finder's fee consisting of 2,000,000 shares of the Company at closing, 3,000,000
shares upon the advance of Tranche B and cash equal to 5% of the amount advanced
under the Loan.


About MineTech International

MineTech International Limited has served the Canadian and International mining
markets since its founding in 1989. Staffed by experienced engineers and
geologists, it is located in Halifax, Canada.


MineTech is an independent, employee-owned consultancy capable of delivering
professional results for a wide range of mining and geological problems,
including assistance with mine exploration, design, permitting and operations.


About Lascaux Resource Capital Partners, LLC

Lascaux Resource Capital Partners, LLC is the general partner of Lascaux
Resource Capital Fund I L.P. which is dedicated to providing production based
financing to enable smaller mining companies to put their assets into
production. 


About Ressources Appalaches

Since it was created in 1994, the goal of Ressources Appalaches has been to
discover and develop deposits of base and precious metals in Canada with an
expertise targeted towards the Appalachian geological formation in Quebec and
Nova Scotia. The Company is mainly focused on the exploration and development of
the Dufferin Gold Mine in Nova Scotia. 


Photos of the Dufferin Mine and tis facilities are available on the Company's
website at: www.ressourcesappalaches.com. 


The above mining & milling information of this release have been verified by
MineTech International's Patrick Hannon, M.A.Sc., P.Eng. and Douglas Roy,
M.A.Sc., P.Eng., both reviewers are independent of Ressources Appalaches.


The contents of this press release were prepared and reviewed by Alain Hupe,
Eng. a Qualified Person as defined in NI 43-101. Neither the TSX Venture
Exchange nor its Regulation Service Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts any responsibility for the
adequacy or accuracy of this release. 


This press release may contain forward-looking statements that include elements
of risk and uncertainty. Consequently, actual results may differ substantially
from those anticipated in such statements. These risks and uncertainties are
described in the quarterly and annual reports, and in the documents submitted to
the securities administration. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Alain Hupe, Eng.
President
418-724-0901
info@ressourcesappalaches.com


Jean-Claude Morel
Executive Vice-President
418-724-0901
info@ressourcesappalaches.com
(TSXV:APP)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024