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Note 12 - Subsequent Events
9 Months Ended
Jun. 30, 2018
Notes  
Note 12 - Subsequent Events:

NOTE 12 – SUBSEQUENT EVENTS:

 

On July 30, 2018, we entered into a binding commitment letter (the “Loan Agreement”) and promissory note (the “Note”) with William Matlack (“Lender”).  Under the Loan Agreement, the Lender purchased from Timbelrine the principal amount of US$300,000 (the “Principal Sum”) of senior unsecured notes (the “Notes”), with the Principal Sum bearing interest at an annual rate of 18%, compounded monthly. The loan is unsecured and the Principal Amount and accrued interest will become due for repayment on January 20, 2020, but may be repaid early without penalty. The Lender is an arm’s length party to the Company.  Amounts drawn under the Loan Agreement will be used for exploration expenditures, annual property holding costs, and working capital requirements of the Company.

 

Pursuant to the terms of the Loan Agreement, the Company issued to the Lender 3,265,500 non-transferrable common share purchase warrants of the Company (the “Warrants”), which is equal to 100% warrant coverage of the Principal Sum, determined by dividing the Principal Sum by the Company’s last closing share price on the TSX Venture Exchange (CND$0.12), converted to U.S. dollars, prior to the effective date of the Loan Agreement.  The exercise price of the Warrants is US$0.09, and the Warrants contain a provision restricting their exercise in the event any such exercise would cause the Lender to own 10% or more of our outstanding common shares.