VANCOUVER, Oct. 7, 2014 /CNW/ - Veris Gold Corp. ("Veris" or the "Company") reports that on October 3, 2014 the Supreme Court of British Columbia made an order (the "DIP Order") authorizing the Company and its subsidiaries to enter into a debtor-in-possession financing agreement ("DIP Agreement") with Wbox 2014-1 Ltd. (the "DIP Lender") pursuant to which an aggregate amount of up to USD$12 million will be available to support the continued operations during the Companies' Creditors Arrangement Act ("CCAA") proceedings. In the Company's proceedings under Chapter 15 of the U.S. Bankruptcy Code (the "US Proceedings"), the DIP Order was recognized and enforced by the United States Bankruptcy Court – District of Nevada pursuant to an order made October 6, 2014 (the "Recognition Order").
Continued protection under the CCAA and the US Proceedings, together with the new financing available under the DIP Agreement will provide the Company with additional time and stability to progress with its restructuring plan under CCAA. The Company continues to operate its gold producing mines and processing plant at Jerritt Canyon located in Elko County, Nevada.
The DIP Agreement is for a six month term with an optional extension period of three additional months and can be drawn on up to four times. The DIP Lender has a super-priority charge over all of the Company assets pursuant to the DIP Order and the Recognition Order.
The Company has been operating under the protection of the CCAA and the U.S. Bankruptcy Code since June 9, 2014.
All inquiries regarding Veris' CCAA proceedings should be directed to the Monitor, Ernst & Young, Inc.: Mr. Rocky Ho at (604) 891-8425. Information about the CCAA proceedings, including copies of all court orders and the Monitor's reports, is available on the Monitor's website: www.ey.com/ca/verisgold.
About Veris Gold Corp.
Veris Gold Corp. is a growing mid-tier North American gold producer in the business of developing and operating gold mines in geo-politically stable jurisdictions. The Company's primary assets are the permitted and operating Jerritt Canyon processing plant and gold mines located 50 miles north of Elko, Nevada, USA. The Company's primary focus is on the re-development of the Jerritt Canyon mining and processing plant. The Company also holds a portfolio of precious metals properties in British Columbia and the Yukon Territory, Canada, including the Ketza River Property.
On behalf of
"VERIS GOLD CORP."
President and CEO
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Forward-Looking Statements This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, "forward-looking information"). Forward-looking information includes, but is not limited to, statements with respect to estimated mineral resources, anticipated effect of the completed drill results on the operations at Jerritt Canyon, the interpretation of those results, and timing and expectations of future work programs. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects, "is expected", "budget", "scheduled", "estimates", forecasts", "intends", "anticipates", or "believes", "has the potential" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved. The forward-looking information contained in this news release is based on certain assumptions that the Company believes are reasonable, including, with respect to mineral resource estimates, the key assumptions and parameters on which such estimates are based, as set out in this news release and the technical report for the property, that the current price of and demand for gold will be sustained or will improve, the supply of gold will remain stable, that the general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms and that the Company will not experience any material accident, labor dispute, or failure of plant or equipment.
However, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, conclusions of economic evaluations, the risk that actual results of exploration activities will be different than anticipated, that cost of labour, equipment or materials will increase more than expected, that the future price of gold will decline, that mineral resources and reserves are not as estimated, that actual costs or actual results of reclamation activities are greater than expected; that changes in operations may result in increased costs, unexpected variations in mineral resources and reserves, grade or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes and other risks generally associated with mining. See our Annual Information Form for additional information on risks, uncertainties and other related factors. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
SOURCE: Veris Gold Corp.
For further information: Veris Gold Corp., Nicole Sanches, Vice President, Investor Relations, T: (604) 688-9427 ext 224, NA Toll Free: 1-855-688-9427, E: [email protected], W: verisgold.com