Business
US$1.5 Million Credit Facility Transaction and Consolidation of Debt
US$1.5 Million Credit Facility Transaction and Consolidation of Debt.
About this update from Dfr Gold Inc
[{"type":"text","content":"\n\n\n\nSYMBOL: DFI\n\n\nCAPE TOWN, Feb. 27 /CNW/ - Diamond Fields International Ltd. (DFI:TSX)\n("DFI" or the "Company") is pleased to announce that it has entered into a\ncredit facility agreement (the "Credit Facility Agreement") with Spirit\nResources SARL ("Spirit") providing for a loan by Spirit of US$1.5 million to\nassist the Company with its existing and anticipated future working capital\nrequirements. Spirit is controlled by Mr. Jean-Raymond Boulle who beneficially\nowns, directly or indirectly, an aggregate of 38,174,305 common shares of DFI\nrepresenting approximately 27% of DFI's issued and outstanding shares.\n\n\nAs detailed in DFI's continuous disclosure filings with Canadian\nsecurities regulators (including the Company's Rights Offering Circular dated\nDecember 14, 2006), the Company is indebted to Spirit pursuant to a promissory\nnote issued by the Company dated June 9, 2004, as amended (the "2004 Note").\nAs of February 15, 2007, an aggregate of US$2,298,689.26 in outstanding\nprincipal and accrued and unpaid interest was due to Spirit under the 2004\nNote (the "2004 Note Amount"). Pursuant to the terms of the 2004 Note (and as\napproved by the shareholders of DFI at its annual general meeting held on\nNovember 16, 2005), the 2004 Note Amount is convertible, in whole or in part\nat the election of Spirit, into common shares of DFI at the price of C$0.25\nper share.\n\n\nAs previously announced, by letter agreement dated June 2, 2005 Spirit\nagreed to postpone repayment of the amount owing under the 2004 Note and DFI\nagreed to secure such amount by all of DFI's and its subsidiaries' property\nand assets.\n\n\nThe Credit Facility Agreement, in addition to providing a loan in the\namount of US$1.5 million to DFI for its working capital purposes, consolidates\nall of DFI's prior debt to Spirit (consisting of the 2004 Note Amount and\nother debt in the aggregate amount of US$182,944.86 as reported in the\nCompany's financial statements) for an aggregate principal amount of\nUS$3,981,634.12 owing under the Credit Facility Agreement (the "Principal").\nEffective February 20, 2007, such Principal will accrue interest under the\nCredit Facility Agreement at the rate of 10% per annum, payable monthly with\nthe first payment to commence on the last ...