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Falco Resources Announces Extension of Maturity Date of Senior Note and Senior Loan
MONTREAL, Dec. 20, 2018 (GLOBE NEWSWIRE) -- Falco Resources Ltd. (TSX.V: FPC) (“Falco” or the “Corporation”) is pleased to announce that, the Corporation and Os
About this update from Falco Resources Ltd.
[{"type":"text","content":" MONTREAL, Dec. 20, 2018 (GLOBE NEWSWIRE) -- Falco Resources Ltd. (TSX.V: FPC) (“Falco” or the “Corporation”) is pleased to announce that, the Corporation and Osisko Gold Royalties Ltd (“Osisko”) agreed to amend the $10 million senior note (the “Senior Note”) entered into by the Corporation on May 30, 2016, as amended on November 29, 2017, February 14, 2018 and May 31, 2018, and the $10 million secured senior loan entered into by the Corporation on September 10, 2018 (the “Senior Loan” and, collectively with the Senior Note, the “Loans”), by extending the maturity of the both Loans to February 28, 2019. The principal amount of the Senior Note and any accrued interest will be reimbursed through the deposit to be made by Osisko upon closing of the Silver Stream Transaction (described below). No interest shall accrue on the principal amount as from June 1st, 2018 unless Osisko and Falco fail to enter into the Silver Stream Transaction by February 28, 2019, in which case, interests shall accrue retroactively from and after June 1st, 2018. In the event that Osisko makes a demand for payment of the Senior Note on or before the maturity date and Falco and Osisko have not yet entered into the Silver Stream Transaction, Osisko will have the option to request the Senior Note to be paid in cash together with the accrued and unpaid interests or to be granted a 1% net smelter return royalty on the Horne 5 Project with accrued interests to be paid in cash. Under the terms of the Senior Loan, the principal amount shall be repaid on the earliest of the closing date of the Silver Stream Transaction (described below) and February 28, 2019. Silver Stream Transaction with Osisko On June 18, 2018, the Corporation announced a financing transaction with Osisko pursuant to which Osisko has agreed to commit up to $180 million through a silver stream (the “Silver Stream Transaction”) toward the funding of the development of the Horne 5 Project. The Silver Stream Transaction is subject to a right of first refusal (the “ROFR”) in favor of Glencore Canada Corporation (“Glencore”). Pursuant to the ROFR, Glencore shall have a period of 60 days following the receipt of a notice accompanied by a copy of the Silver Stream Transaction documentation to notify Falco that it wishes to purchase the silver st...