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Eco Oro Minerals receives US$14M investment from Tenor Capital's Trexs

Eco OroMinerals Corp. said July 22 that it has entered into an investmentagreement allowing Trexs Investment LLC, an entity managed by Tenor CapitalManagement Co. LP, to invest US$14 million in the company.

The investment will occur in two tranches. The firsttranche, which closed with the execution of the agreement, is for US$3 million,with Eco Oro issuing 10,608,225 common shares to Trexs, equivalent to a 9.99%stake in the company.

The second tranche for US$11 million, upon receivingshareholder approval, will see Eco Oro issue 84,590,427 common shares to Trexsto increase its stake to 49.99%, as well as a US$7 million unsecuredconvertible note. The note has an interest of 0.025% per annum and a maturitydate of June 30, 2028.

The company will use the proceeds from the agreement to fundits arbitration with the government of Colombia under the Free Trade Agreementbetween Canada and Colombia.

If the company fails to obtain shareholder approval, Trexswill retain the note plus a secured contingent value rights entitling theinvestor to 51% of the gross proceeds from the arbitration.