Trading Symbol: TSX-V: IG
CALGARY, April 11, 2012 /CNW/ - Infinito Gold Ltd. (the "Company" or "Infinito") announces that it has accepted an offer of a demand loan facility for $200,000 (the "Loan")from Exploram Enterprises Ltd. ("Exploram"), its major shareholder, and that all of the $200,000 has been advanced to the Company. The closing occurred promptly upon acceptance of the offer by Infinito as the funds were required urgently.
The indebtedness under the Loan is to be secured under the existing General Security Agreement between the Company and Exploram delivered in connection with the sale of convertible notes of the Company on February 10, 2009 (the "Prior Notes"). Interest is payable on the outstanding balance of the Loan monthly in arrears at a rate of 19.0% per annum.
The Loans are in addition to $17.3 million of principal in other demand loans (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 Loans is repayable on demand at any time and may be prepaid in whole or in part without penalty. In addition, all indebtedness under the Loans 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 Loans are expected to satisfy the Company's immediate working capital requirements into April of 2012 as the Company continues with its corporate restructuring efforts as disclosed in its interim financial statements dated December 31, 2011, which are available on SEDAR (www.sedar.com).
The Company continues to undertake a detailed and continuous budgeting and review process. The Company will continue to work with its major shareholder to secure funding on a short-term basis to be used to finance operations as the Company works to minimize its ongoing cash requirements and realize the maximum value from selected portions of its property, plant and equipment. Further funding is at the sole discretion of the Company's major shareholder.
The Company also announces that as a result of the ongoing delays faced by the Company in Costa Rica and the reduced requirement for management time, that Mr. John Morgan, President and CEO, is taking the position of Interim President and CEO of Infinito Gold Ltd. In this capacity Mr. Morgan will significantly reduce the amount of time he spends on Company business to reflect the reduced demands for management time. Similarly Mr. Brian Orgnero, Vice President Finance and CFO, has accepted a role with Infinito's major shareholder effective April 1, 2012.
With the consent of the Board of Directors both Mr. Morgan and Mr. Orgnero will continue to fulfill their revised respective duties with the Company while the reduced time commitments will allow them to pursue other initiatives.
The Board of Directors and the Company look forward to continuing to work with Mr. Morgan and Mr. Orgnero in their new capacities with the Company while wishing them success in their new endeavours
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, the timing and nature of further legal action initiated by the Company and the possibility of appeals or new litigation by parties opposed to the project. 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.
President and CEO
"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 and accuracy of this release."
For further information:
INFINITO GOLD LTD.
600, 1100 1st Street S.E.
Calgary, Alberta T2G 1B1
Telephone: (403) 444-5191