Business
Serabi extends drawdown period for convertible ...
Serabi extends drawdown period for convertible ....
About this update from Serabi Gold Plc
[{"type":"text","content":"\n \n \n Serabi extends drawdown period for convertible loan\n \n \n \n \n For immediate release\n \n 4 August 2020\n \n Serabi Gold plc\n (“Serabi” or the “Company”)\n \n \n Serabi \n extends drawdown period for convertible loan\n \n Serabi Gold plc (AIM: SRB, TSX: SBI), the Brazilian focused gold mining and development company, is pleased to announce that it has agreed with Greenstone Resources II LP (“Greenstone”) to extend by six months the period during which the Company can draw down on the US$12 million Convertible Loan Facility (“the Convertible) that was announced on 23 April 2020 and is being subscribed for by Greenstone.\n \n Mike Hodgson, CEO, commented: \n \n “Extending, by six months, the period in which we can draw down on the Convertible, will relieve pressure to draw down funds earlier than might otherwise be necessary and avoid incurring additional debt under the Convertible that may ultimately not be required. This is excellent news for the Company and its shareholders\n “Despite the COVID-19 pandemic, we have continued mining operations at the Palito Complex and with the gold prices that we have benefitted from during the second quarter of this year, were able to pay down the remaining US$3.5 million of the loan with Sprott Resource Lending Partnership whilst maintaining our cash position. Despite lower production levels, the second quarter was one of our best ever quarters from a cash flow perspective. Greenstone provided Serabi with the Convertible as a means to help ensure that the Company was able to complete the acquisition of the Coringa gold project. With the gold price looking set to be maintained, the Sprott loan now repaid and projected production levels, we currently anticipate that Serabi can fund the US$1 million per month instalments that are due to Equinox Gold Corp (“Equinox”) for Coringa, at least in the near term, from the cash flow generated from on-going operations.”\n \n Details of the variation in the terms of the Convertible\n \n The original period during which the Company could draw down funds under the Convertible was due to expire on 31 December 2020 (the “Availability Period”), after which time any funds that had not been drawn down under the Convertible would no longer be available. The...