Business
Revett Minerals Completes US$6.5 million Payment Obligation Restructuring
Revett Minerals Completes US$6.5 million Payment Obligation Restructuring
About this update from Red Lake Gold Inc
[{"type":"text","content":"\n\n\n\nOct. 22, 2009 (Canada NewsWire Group) -- SPOKANE VALLEY, WA, Oct. 22 /CNW Telbec/ -- Revett Minerals Inc. (\"Revett or the Company\") (\"TSX:RVM/OTCBB:RVMIF) announced today that it has successfully completed US$6.5 million in payment obligation restructuring. This debt and payment obligation restructuring program was comprised of the following transactions:Royal Gold----------Revett has completed an agreement with Royal Gold Inc. to restructure the final US$1.6 million due under its original Troy project financing royalty. In consideration for relieving this payable, the Company has agreed to reconfigure an existing gross smelter return (\"GSR\") production royalty at Troy. This restructured royalty will now be a flat rate 3% GSR at Troy commencing in July 2010, rather than a 6.1%/2% GSR which would have commenced at a later date under the original terms.Small Mines Development-----------------------Under the terms of the agreement signed on October 13, 2009, Small Mines Development, LLC has agreed to settle its receivable from Revett of approximately US$0.53 million in consideration for the issuance of approximately 3.5 million common shares of Revett at a price of US$0.15 per share.Trafigura AG------------As previously announced, the Trafigura US$4.3 million interest bearing note originally due June 30, 2009 has been restructured. As part of the restructuring, US$1 million was converted to equity and the remaining principal termed out over three years. Trafigura also received detachable warrants exercisable at US$0.20, which if exercised would reduce the remaining principal by up to US$2 million.John Shanahan, President and CEO commented \"This has been a significant opportunity to bring our indebtedness to a level that we can support from our ongoing operations at Troy. This would not be possible if not for the dedication of our 180 employees at Troy who have continued to realize production efficiencies throughout this year. We are also thankful for our valued relationships with Trafigura, Royal Gold and SMD who have, and continue to, believe in the Revett story and our potential at Troy and Rock Creek.\"About RevettRevett Minerals, through its subsidiaries, owns and operates the currently producing Troy Mine and development-stage Rock Creek Project, both located in northwestern Montana, USA. The proven reserves at t...