Trading Symbol: TSXV: IG
CALGARY, Feb. 11, 2015 /CNW/ - Infinito Gold Ltd. (the "Company" or "Infinito") announces that it has accepted an offer of a demand loan facility for up to $750,000 (the "Loan") from Exploram Enterprises Ltd. ("Exploram"), its major shareholder, and that $300,000 has been advanced to the Company under the Loan to date. The closing occurred promptly upon acceptance of the offer by Infinito. Any further advances pursuant to this Loan facility are at the sole discretion of Exploram.
The indebtedness under the Loan is to be secured under the existing General Security Agreement, as amended, between the Company and Exploram delivered in connection with the sale of convertible notes of the Company on February 10, 2009 (the "Prior Notes"). The Loan is non-interest bearing.
The Loan is in addition to $18.7 million of principal in other demand loans (the "Other Demand Loans") that are also payable to Exploram, and is in addition to $50.5 million in principal owed under the Prior Notes.
All indebtedness under the Loan is repayable on demand at any time and may be prepaid in whole or in part without penalty. In addition, all indebtedness under the Loan shall rank equally with the Other Demand Loans and senior to all other indebtedness of the Company. There are no structuring fees to be paid by the Company in conjunction with the Loan.
The funds advanced under the Loan are expected to satisfy the Company's immediate working capital requirements through February 2015 as the Company continues to pursue its arbitration claim against the Government of the Republic of Costa Rica (see news release dated February 10, 2014), and as disclosed in its condensed consolidated interim financial statements dated September 30, 2014 and its audited consolidated financial statements dated March 31, 2014, both of which are available on SEDAR (www.sedar.com).
The Company will continue to work with its major shareholder, Exploram, to secure funding on a short-term basis, as required, to be used to finance the Company's short-term working capital requirements. Any such further funding is at the sole discretion of Exploram.
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 extent of the Company's working capital requirements; the Company's ability to access further short-term financing; developments, if any, in relation to the arbitration claim against the Government of the Republic of Costa Rica; and the timing and nature of further legal action, if any, in Costa Rica. 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.
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.
SOURCE Infinito Gold Ltd.