Cortez Gold Corp.: Debt Facility Under Negotiation
December 02 2013 - 10:00AM
Marketwired
Cortez Gold Corp.: Debt Facility Under Negotiation
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 2, 2013) -
Cortez Gold Corp. (TSX-VENTURE:CUT) ("Cortez" or the "Company")
reports that it is negotiating a debt facility for Cdn$2 million
with various European financiers (the "Loan"). The Company hopes to
finalize the Loan with a 24-month term, with no payments required
until after the 18th month following the effective date of
disbursement of the Loan funds. After the 18th month, a payment of
interest only will be due and payable (covering interest for the 18
months that the Loan will have been outstanding), and interest
payments shall continue thereafter on a monthly basis until the end
of the term. At the end of the term, the principal amount plus any
outstanding interest will be due and payable.
The proceeds from the Loan will be used to complete construction
of the Company's gold and silver processing plant in Matehuala,
Mexico (the "Altiplano Plant"), which is owned by the Company's
Mexican subsidiary, Altiplano Goldsilver S.A. de C.V. The Company
proposes to offer the lenders security in the form of a first
priority interest and mortgage on the Altiplano Plant and
equipment.
Subject to regulatory approvals, a one-quarter warrant
("Warrant") will attach to every dollar of debt, each whole Warrant
entitling the holder to acquire one common share of Cortez at $0.40
per share for a period of two years. At the Company's option, the
Warrants may be subject to accelerated expiry should the common
shares of the Company close at a minimum of $0.60 for a period of
twenty (20) consecutive trading days on the TSX Venture
Exchange.
"We are excited that we are making progress on the Company's
plans to complete the Altiplano Plant. We anticipate that when the
plant is complete, we can start processing gold and silver ores,"
said Robert Eadie, President of Cortez. "And now that I've told you
what the Company will be doing, our legal counsel has advised that
we must also include the customary caveats, and highlight the
uncertainties and potential risks surrounding proposed
transactions. These will be detailed in the disclaimer included in
this release."
The proposed debt facility is subject to regulatory
approvals.
ON BEHALF OF THE BOARD OF CORTEZ GOLD CORP.
Robert Eadie, President
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.
All statements in this news release that address events or
developments that the Company expects to occur, other than
statements of historical facts, are "forward-looking information".
Forward-looking information is necessarily based on assumptions
that are inherently subject to known and unknown risks,
uncertainties and other factors that may cause the Company's actual
results, performance or achievements to be materially different
from those expressed or implied by such forward-looking statements.
Generally, forward-looking information can be identified by the use
of forward-looking terminology such as "expects", "believes",
"anticipates", "budget", "scheduled", "estimates", "forecasts",
"intends", "plans" and variations of such words and phrases, or by
statements that certain actions, events or results "may", "will",
"could", "would" or "might", "be taken", "occur" or "be achieved".
Forward-looking statements made in this news release include all
statements related to: the Company's intention to conclude a loan
facility; the terms of the proposed loan facility including the
size of the debt; the repayment of such loan facility; the intended
use of proceeds from the loan facility, and the proposed issuance
of warrants related to the loan facility. Such forward-looking
information is based on management's reasonable assumptions,
including without limitation, assumptions about: general economic
conditions and conditions in the financial markets; limited changes
in demand and prices for minerals; the ability of the Company to
access sufficient financing as contemplated in this news release;
the ability of the Company to conclude a transaction on
satisfactory terms or to realize the expected benefits of any
transaction; the ability of the Company to satisfy the conditions
in any agreement related to such a transaction; the belief that the
required approvals will be obtained from all required third party,
regulatory and government authorities; and the expectation that the
Company will be able to complete construction of its processing
facility and achieve its operational, production and/or financial
objectives in respect of any of its operations and generally.
Factors that could cause future events to differ from those
anticipated in forward-looking statements include: the inability to
negotiate a transaction on terms acceptable to the Company; delays
in obtaining approvals for the proposed transaction; delays in
completing construction of the proposed plant;, litigation,
legislative, environmental and other judicial, regulatory,
political and competitive developments; fluctuations in foreign
exchange rates and interest rates; inability to achieve operational
efficiencies on the costs and timing of the transactions and
related activities, including but not restricted to construction of
the processing plant; labour disputes or other adverse events;
changes in applicable laws or regulations; and any other factors
that may cause actual results, performance or achievements to be
materially different from those expressed or implied by such
information.
Although Cortez has attempted to identify important factors
that could cause actual outcomes, performance or achievements to
differ materially from those contained in forward-looking
information, there can be other factors that cause results,
performance or achievements not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate or that management's expectations or estimates
of future developments, circumstances or results will materialize.
As a result of these risks and uncertainties, any proposed
transaction could be modified, restricted or not completed, and the
results or events predicted in these forward-looking statements may
differ materially from actual results or events. Accordingly,
readers should not place undue reliance on forward-looking
information. The forward-looking information in this news release
is made as of the date of this news release, and Cortez disclaims
any intention or obligation to update or revise such information,
except as required by applicable law.
Cortez Gold Corp.Robert EadiePresident(604) 602-4935(604)
602-4936info@cortezgoldcorp.com