Shine Minerals Secures C$410,000 in Unsecured Loans for Red Cloud Silver Option Payment
News related to:Shine Minerals Corp · 1 min read
Shine Minerals Corp., a Canadian junior resource company, has secured financing through unsecured promissory notes, each with a principal amount of C$205,000. The loans, totaling C$410,000, were provided by two non-arm’s length private companies, one wholly owned by Ross McElroy, the President and Chief Executive Officer (CEO) of Shine, and the other by Dev Randhawa, the Executive Chairman of the company.
These loans will be used by Shine to make an option payment in connection with the company’s previously announced proposed transaction with Red Cloud Silver Ltd. (RCS). The transaction is governed by a definitive option agreement dated December 23, 2025, which was subsequently amended by an amending agreement dated March 24, 2026. The Proposed Transaction remains subject to the approval of the TSX Venture Exchange (TSXV).
The terms of the loans are unsecured, with all payments of principal and accrued interest deferred and repayable at the discretion of Shine. The loans bear an annual interest rate of 10%, which is also payable at the company’s discretion. According to the press release, the issuance of the loans is considered a related party transaction under the Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (MI 61-101). However, the transaction is exempt from the minority approval and formal valuation requirements of MI 61-101, as Shine is not listed or quoted on any of the markets listed in subsection 5.5(b) of MI 61-101.
Shine Minerals Corp. is currently pursuing value-accretive transactions to re-establish itself as an active Tier 2 Mining Issuer in accordance with TSXV Policy 2.6, Section 1.4. The company’s focus is on quality exploration assets and a disciplined approach to capital allocation.
The Proposed Transaction is a significant step for Shine, as it aims to secure a valuable asset through a strategic partnership with Red Cloud Silver Ltd. The transaction is subject to the approval of the TSX Venture Exchange, and the company remains committed to transparency and compliance with all relevant regulations.