TORONTO, ON –(Marketwired – January 27, 2017) –
Pursuant to the amendment, Auramet will loan US$9,000,000 to the Company (the “Facility”) which will be used for the full repayment of the Gold Loan and to provide for additional working capital of $2,500,000.
The Facility is guaranteed by the Company’s interests in its San Andres, Ernesto Pau-a-Pique and Sao Francisco mines, the Aranzazu and the Serrote da Laje projects (both currently on full care and maintenance), and secured by a continuing security interest in all the Company’s present and future personal property.
In furtherance of the Facility, the Company has entered into gold purchase agreements in respect of all the gold ounces produced at the Company’s gold mines. The gold will be sold at market rates for a period of two years.
The principal on the facility will be repaid in 30 equal bi-weekly installments of US$300,000 starting the week of May 5, 2017 and ending the week of June 15, 2018. Interest is calculated as to a discount of US$10.00 per ounce of gold (spot price) purchased by Auramet for 7,200 ounces per month and will commence in February 2017. The Company may prepay the entire amount of the Facility without penalty.
Auramet is a global physical metals merchant that provides a full range of services to participants in the precious and base metals sectors, including prepayment and other financings, advisory services, off-take from mining and recycling companies, revenue enhancement strategies, and price protection programs.
This press release contains certain “forward-looking information” and “forward-looking statements”, as defined in applicable securities laws (collectively, “forward-looking statements”). All statements other than statements of historical fact are forward-looking statements. Forward-looking statements in this press release relate to future events or future performance and reflect the Company’s current estimates, predictions, expectations or beliefs regarding future events.
Often, but not always, forward-looking statements may be identified by the use of words such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies.
Known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s ability to predict or control could cause actual results to differ materially from those contained in the forward-looking statements. Specific reference is made to the factors set out under the heading “Risk Factors” in the Circular and the factors set out under the heading “Risk Factors” in the Company’s Annual Information Form (“AIF”) dated March 24, 2016 and the Company’s Management’s Discussion and Analysis (“MD&A”) dated March 24, 2016, and interim MD&As thereafter, which are available on SEDAR (www.sedar.com).
All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.
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