Amarillo Announces the Extension and Amendment of Its Gold-Linked Credit Facility
February 20 2018 - 07:00AM
Amarillo Gold Corporation (“
Amarillo” or the
“
Company”) (TSX.V:AGC), is pleased to announce
that it has amended and extended its existing gold-linked credit
facility (the “
Facility”).
Amarillo and its lending group have agreed to
extend the maturity of the Facility from July 31, 2019 to June 30,
2022. The other terms and conditions will remain the same.
On July 31, 2014, the Company entered into the
Facility for the purpose of financing the Company and consolidating
many of the Company’s then current obligations into a single
structure.
Following the above-referenced extension of the
maturity date, the Facility must be repaid on the earliest of: (i)
a change of control of the Company; (ii) three months following a
declaration of commercial production at the Company’s Mara Rosa
Project; and (iii) June 30, 2022.
The Facility bears interest at 12% per annum,
calculated quarterly based on outstanding principal and unpaid
interest; and is secured by a 5% net smelter royalty on the
Company’s Mara Rosa Project, which relinquishes on repayment of the
loan. The lenders are granted a right of first refusal on equity
issuance at a price less than $0.25 per share and a pro-rata right
of participation at share prices above $0.25 per share. Under the
Facility, the Company can borrow up to the US dollar value of 5,000
ounces of gold using certain defined gold price close to the time
of drawdown. The Company has drawn the equivalent of approximately
4,448 ounces of gold and accrued interest of 2,018 ounces of gold
for a total of 6,466 ounces of gold which have not been repaid.
Please see the Company’s news release dated August 18, 2014 for
further details.
Mike Mutchler, President & CEO, stated “We
are pleased with the extension of this Facility, which will mature
at about the time of planned production at Mara Rosa. We are
currently pursuing financing alternatives to fund our immediate
planned activities to get us to the next step of applying for the
Installation Permit (LI). The extension of the maturity date of
this Facility has alleviated the uncertainty surrounding its
original maturity date and has put us in good stead to move forward
with Mara Rosa and Lavras do Sul.”
ABOUT AMARILLO
Amarillo is developing a highly economic, open
pit gold resource at its Mara Rosa deposit in the mining friendly
jurisdiction of the Goias State in Brazil. In addition, Amarillo
has an advanced exploration project with excellent grades at
Lavras do Sul, in the State of Rio Grande do Sul, Brazil. Both
projects have excellent nearby infrastructure. The Mara Rosa
Project was awarded the main permit (LP) that gives social and
environment permission to mine. This has allowed Amarillo to move
forward and work on the installation permit (LI).
For further information, please
contact:
Mike
MutchlerPresident &
CEO416-294-0736mike.mutchler@amarillogold.com |
or |
|
Karen
MateConsultant 416-230-6454 karen.mate@amarillogold.com |
|
82
Richmond St. East Suite 201 Toronto, ON Canada, M5C 1P1 Website:
www.amarillogold.com |
|
|
|
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS:
This news release contains Forward Looking
Statements regarding our intentions and plans. Forward Looking
Statements in this news release include that we will receive
proceeds of a gold loan, the manner in which we will use the net
proceeds from the goal loan moving forward and our projects have
potential for commercialization. Various factors may prevent or
delay our plans, including but not limited to, the lenders not
advancing funds as required, contractor availability and
performance, weather, access, mineral prices, and success and
failure of the exploration and development carried out at various
stages of the program. Permission from the Government and community
is also required to proceed with future mining production. We may
not be able to fulfill our obligations under the proposed gold loan
and we may be unable to raise sufficient financing to carry out our
plans. Readers should review risk factors applicable to junior
mining exploration companies generally to understand the variety of
risks that can affect the Company. 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 me be required by law.
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