DENVER, June 15, 2022 (GLOBE NEWSWIRE) — Resource Capital Fund V L.P. (“RCF V”) reports that, on June 14, 2022, pursuant to a letter agreement dated June 10, 2022, it disposed of ownership and control of 347,945,097 common shares (each, a “Buffalo Share”) of Buffalo Coal Corp. (“Buffalo”) to Belvedere Resources DMCC (“Belvedere”). In addition, Belvedere agreed to assume a US$27 million convertible loan (the “Loan”) pursuant to a convertible loan agreement between Buffalo and RCF V, subject to Belvedere obtaining a required consent. If the required consent for the assumption of the Loan is not obtained prior to August 31, 2022, RCF V will convert the Loan to Buffalo Shares at the conversion rate of C$0.0469 per Buffalo Share and convey the said Buffalo Shares to Belvedere.
Belvedere paid US$540,000 for the Buffalo Shares and US$2,000,000 for the assumption of the Loan, for an aggregate consideration of US$2,540,000 paid to RCF V (or C$3,302,000, assuming a USD to CAD exchange rate of US$1.30:C$1). Belvedere paid approximately US$0.00155 per Buffalo Share (or C$0.0020).
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Prior to the sale of the Buffalo Shares, RCF V owned, or had control or direction over 347,945,097 Buffalo Shares, representing 82.58% of the issued and outstanding Buffalo Shares. Immediately following the sale of the Buffalo Shares, RCF V does not own, or have control or direction over, any Buffalo Shares.
Because RCF V is deemed to beneficially own less than 10% of the issued and outstanding Buffalo Shares, RCF V is no longer subject to ongoing early warning or insider reporting requirements in respect of its ownership of Buffalo Shares.
RCF V disposed of the Buffalo Shares and the Loan in accordance with its routine investment strategy to generate proceeds from its investment in Buffalo.
Buffalo’s head office is located at GreyTown Road Industrial Area, Dundee, KwaZulu-Natal 3000. To obtain a copy of the early warning report filed under applicable Canadian securities laws in connection with the transactions hereunder, please see Buffalo’s profile on the SEDAR website www.sedar.com.
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About Resource Capital Fund V L.P.
RCF V is a Cayman Islands exempt limited partnership and a private investment fund. For further information and to obtain a copy of the early warning report, please contact:
Resource Capital Fund V L.P.
1400 Wewatta Street, Suite 850
Denver, Colorado, 80202, USA
Telephone: (720) 946-1444
Attn: Mason Hills
