Trading Symbol: TSX-V: IG
CALGARY, May 31 /CNW/ - Infinito Gold Ltd. (the "Company") announces that it has extended the engagement of BNP Paribas to July 31, 2010 from May 31, 2010 under the same general terms and conditions disclosed in the Company's November 13, 2009 news release. BNP Paribas was originally 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
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 SALA IV has not released its full, detailed ruling nor have the proceedings before the Tribunal Contencioso Administrativo, or Administrative Court (the "Tribunal") 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, that the Company has been advised when the detailed SALA IV ruling will be released, or that the Tribunal proceedings will be resolved favourably
In addition, the Company wishes to announce that it has received waivers of events of default under the outstanding $50,500,000 Secured Convertible Notes (the "Notes") of the Company held by Exploram Enterprises Ltd. ("Exploram") and Auro Investments Ltd. ("Auro", and together with Exploram, the "Noteholders"). This represents the tenth time since June 30, 2009 the Noteholders have waived events of default relating to the delay in receipt of a decision by the SALA IV.
As disclosed in news releases dated September 30, 2009 and October 30, 2009, the Notes originally provided that it would be an Event of Default if the SALA IV proceedings had not been resolved favourably by June 30, 2009 and if the first drawdown under a project debt financing facility did not occur by September 30, 2009 and the first interest payment due under the Notes was payable on September 30, 2009. None of these deadlines were met and each of these defaults has now been waived until June 30, 2010. In addition, Infinito's obligation to pay certain structuring fees has been deferred, and the defaults associated with such non-payment have been waived, until June 30, 2010.
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 timing related to the dissemination of the complete, detailed SALA IV decision and the nature of any conditions contained therein, the impact of the recent injunction on development at the site, 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. These statements are made as of the date of this release but 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