Business
U.S. Silver & Gold Inc. announces agreement to replace existing debt
TORONTO , Aug. 8, 2013 /CNW/ - U.S. Silver & Gold Inc. (TSX: USA, OTCQX: U...
About this update from Americas Gold And Silver Corporation
[{"type":"text","content":"\n\n\nTORONTO, Aug. 8, 2013 /CNW/ - U.S. Silver & Gold Inc. (TSX: USA, OTCQX:\n USGIF) (\"U.S. Silver & Gold\" or the \"Company\") has replaced the\n previously announced extension on its existing US $7.9 million senior\n secured credit facility with Hale Capital Partners.\n\n\nThe Company has signed a credit agreement with Royal Capital Management\n Corporation as security agent, and certain lenders for the issuance of\n CDN $8.5 million notes (the \"Notes\") with a three-year term. The Notes\n carry a comparable annual interest rate of 12%, payable monthly, and\n are secured by a first charge on all material assets of the Company.\n Beginning two years following the date of issue, the Notes will be\n redeemed in monthly increments of $500,000 with the balance due and\n payable on maturity. The debt may be repaid at any time during the\n three-year term, subject to a repayment fee. In connection with closing\n the transaction, the Company will issue 10,625,000 warrants. Each\n warrant allows the holder to purchase one of the Company's common\n shares for a five-year term, and will be issued with an exercise price\n of $0.68, subject to downward adjustment in certain circumstances.\n\n\nUnlike the previously announced term sheet with Hale Capital Partners,\n this new credit agreement does not require the Company to pay a net\n smelter return royalty.\n\n\nThe Company will further update the market on the new credit agreement\n during its second quarter conference call on Tuesday, August 13th, 2013 at 4:30 pm Eastern Standard Time.\n\n\nAbout U.S. Silver & Gold Inc.\nU.S. Silver & Gold Inc. is a silver and gold mining company focused on\n growth from its existing asset base and the execution of targeted\n accretive acquisitions. U.S. Silver & Gold owns and operates the Galena\n Mine Complex in the heart of the Silver Valley/Coeur d'Alene Mining\n District, Shoshone County, Idaho and the Drumlummon Mine in Lewis and\n Clark County, Montana. The Galena Mine produces high-grade silver and\n is the second most prolific silver mine in U.S. history delivering over\n 200 million ounces to date, and the Caladay Zone is being evaluated for\n bulk mining development.\n\n\nFor further information please see SEDAR or www.us-silver.com.\n\n\nCautionary Statement Regarding Forward Looking Information:\nThis news r...