Trading Symbol: TSX-V: IG
CALGARY, Nov. 13 /CNW/ - Infinito Gold Ltd. (the "Company") announces that it has extended the engagement of BNP Paribas to March 31, 2010. BNP Paribas was engaged from June, 2009 to September 30, 2009 to provide structuring advice and work with the Company as lead arranger on a project financing for the Company's Crucitas Project. BNP Paribas' work has included technical and legal due diligence, financial modelling, negotiation of financing documentation and preparation of materials for circulation to potential lending syndicate members. Under the terms of the extension of its engagement, BNP Paribas will continue this work and will be paid a work fee of $2,000 per day, commencing October 10, 2009. The work fee is payable to Paribas North America, Inc. (a wholly-owned subsidiary of BNP Paribas) monthly in common shares to be issued at the greater of the 20 trading day volume weighted average price at the end of the period of each payment and the closing market price of the Company's shares on the day before the payment is due less the maximum discount permitted by the TSX Venture Exchange ("TSXV"). The work fee ceases to be payable when the engagement is either terminated or BNP Paribas initiates the loan syndication process by circulating a syndication memorandum to potential lenders. Commencement of the syndication process for the project financing is subject certain terms and conditions, including the favourable resolution of the challenge to the Company's mining permit before the Costa Rican constitutional court (the SALA IV). Payment of the work fee is not contingent on a financing being completed.
The engagement can be terminated by either party and the Company can place the financing work with BNP Paribas under suspension, without terminating the engagement, during which it must pay a work fee of $500 per day. When the work is under suspension BNP Paribas will make itself available for consultation on project financing related matters.
Payment of the work fee is subject to approval of the TSX Venture Exchange.
The Company advises that it continues to proceed with preparations for a project financing as it considered this course of action to be in the best interests of the Company in light of its cash flow needs, notwithstanding the proceedings before the SALA IV have not been resolved. No inference should be drawn from the extension of the engagement or the payment of the common shares that the Company has secured project debt financing or that the SALA IV proceedings will be resolved favourably.
Caution Regarding Forward-Looking Information and Statements
Certain statements in this press release address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. These factors include, among others, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the possibility that all necessary governmental and regulatory approvals will not be received, and the availability of a qualified workforce and third party contractors necessary for the development and operation of a mine. The Company undertakes no obligation to update these forward-looking information or statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking information or statements.
INFINITO GOLD LTD.
"The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release."
SOURCE Infinito Gold Ltd.
For further information: For further information: INFINITO GOLD LTD., 216, 102 - 8th Avenue S.W., Calgary, Alberta, T2P 1B3, Telephone: (403) 444-5191