TORONTO, Dec. 1, 2017 /PRNewswire/ - Banro Corporation
("Banro" or the "Company") (NYSE American - "BAA";
TSX - "BAA") announced today that in accordance with the terms of
the indenture (the "Indenture") governing its 10% secured
notes due 2021, Banro has elected to defer payment of the
approximately US$4.94 million
interest payment due on December 1,
2017 (the "Interest Payment").
No "Event of Default" will occur under the Indenture if the
Interest Payment is made within 30 days of its due date. No
"Event of Default" will occur under the other material debt
obligations of Banro and its subsidiaries as a result of such
interest not being paid on December 1,
2017. The Company has the right to make the Interest
Payment prior to the expiry of the 30-day grace period. The
Company will utilize the grace period to continue its ongoing
discussions with its major stakeholders concerning the possible
restructuring of the Company's non-DRC debt obligations as well as
the provision of financing to support the Company's ongoing
operations in the DRC. There is significant risk that any
restructuring of the Company's non-DRC debt obligations may result
in significant impairment to the value of the equity holders'
interests in the Company.
Banro continues to face significant ongoing, operational and
financial challenges including short and long term liquidity
constraints. The Company's ability to continue operations in
the normal course of business is dependent on several factors,
including securing funding for operations and to meet upcoming debt
servicing and working capital requirements. In the event the
Company is unsuccessful in addressing these ongoing operational and
financial challenges, it may become unable to meet its non-DRC
financial obligations as they become due.
The Company continues to take all steps necessary to ensure the
continuity of its operations in the DRC.
TSX Listing Review
The Toronto Stock Exchange
("TSX") has advised Banro that it has commenced a review
with respect to whether Banro continues to meet the requirements
for continued listing of its shares on the TSX. A meeting of
the Continued Listing Committee of the TSX to consider whether to
delist the shares of the Company is currently scheduled for
December 21, 2017. Trading in
the Company's shares on the TSX is currently suspended in
accordance with the cease trade order issued by the Ontario
Securities Commission on November 20,
2017.
Banro Corporation is a Canadian gold mining company
focused on production from the Twangiza and Namoya mines, which
began commercial production in September
2012 and January 2016
respectively. The Company's longer-term objectives include
the development of two additional major, wholly-owned gold
projects, Lugushwa and Kamituga. The four projects, each of
which has a mining license, are located along the 210 kilometres
long Twangiza-Namoya gold belt in the South Kivu and Maniema
Provinces of the Democratic Republic of
the Congo (the "DRC"). All business activities
are followed in a socially and environmentally responsible
manner.
Cautionary Note Concerning Forward-Looking
Statements
This press release contains
forward-looking statements. All statements, other than
statements of historical fact, that address activities, events or
developments that the Company believes, expects or anticipates will
or may occur in the future (including, without limitation,
statements regarding the ability of the Company to implement
financing or other appropriate strategic transactions as part of
the ongoing process, the Company's liquidity and ability to meet
payment obligations and the timing of meeting such payment
obligations, the Company's intentions for the future of its
business operations and long-term strategy, the Company's
commitment to its employees and suppliers, a resolution of the
situation relating to the closure of road access to the Company's
Namoya mine, estimates and/or assumptions in respect of
future gold production, costs, cash flow and gold recoveries,
mineral resource and mineral reserve estimates, potential mineral
resources and mineral reserves and the Company's production,
development and exploration plans and objectives) are
forward-looking statements. These forward-looking statements
reflect the current expectations or beliefs of the Company based on
information currently available to the Company.
Forward-looking statements are subject to a number of risks and
uncertainties that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking
statements, and even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on the Company.
Factors that could cause actual results or events to differ
materially from current expectations include, among other
things, the possibility that the Company will be unable to
address its ongoing operational and working capital challenges
(including significant liquidity constraints in both the short and
long term) through new financing and/or the restructuring or
refinancing of existing obligations and will therefore be unable to
continue as a going concern. In addition,
actual results or events could differ materially from current
expectations due to instability in the eastern DRC
where the Company's mines are located; political developments in
the DRC; uncertainties relating to the availability and
costs of financing or other appropriate strategic
transactions; uncertainty of estimates of capital and
operating costs, production estimates and estimated economic return
of the Company's projects; the possibility that actual
circumstances will differ from the estimates and assumptions used
in the economic studies of the Company's projects; failure to
establish estimated mineral resources and mineral reserves (the
Company's mineral resource and mineral reserve figures are
estimates and no assurance can be given that the intended levels of
gold will be produced); fluctuations in gold prices and currency
exchange rates; inflation; gold recoveries being less than
expected; changes in capital markets; lack of infrastructure;
failure to procure or maintain, or delays in procuring or
maintaining, permits and approvals; lack of availability at a
reasonable cost or at all, of plants, equipment or labour;
inability to attract and retain key management and personnel;
changes to regulations affecting the Company's activities; the
uncertainties involved in interpreting drilling results and other
geological data; and the other risks disclosed under the heading
"Risk Factors" and elsewhere in the Company's annual report on Form
20-F dated April 2, 2017 filed on
SEDAR at www.sedar.com and EDGAR at www.sec.gov. Any
forward-looking statement speaks only as of the date on which it is
made and, except as may be required by applicable securities laws,
the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Although the Company
believes that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance
should not be put on such statements due to the inherent
uncertainty therein. The forward-looking statements
contained in this press release are expressly qualified by this
cautionary note.
SOURCE Banro Corporation