Business
Serabi Gold plc : Increase in debt facility wit...
Serabi Gold plc : Increase in debt facility wit....
About this update from Serabi Gold Plc
[{"type":"text","content":"\n Serabi Gold plc : Increase in debt facility with Sprott Resource Lending PartnershipFor immediate release 23 January 2018Serabi Gold plc(\"Serabi\" or the \"Company\")Increase in debt facility with Sprott Resource Lending Partnership (\"Sprott\")Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to report that following its acquisition of Chapleau Resources Ltd (\"Chapleau\"), and its 370,000 ounce Coringa gold project (\"Coringa\") on 21 December 2017 (the \"Acquisition\"), Serabi has now arranged an additional US$3 million secured loan (the \"New Facility\") with its existing lender, Sprott.The funds will be used to provide increased working capital for the Company and in particular to replace funds it used to make the initial US$5 million cash payment upon completion of the Acquisition. The Company had an existing US$5 million loan (the \"Existing Facility\") from Sprott repayable in 24 monthly instalments with a final repayment date of 31 December 2019. As part of the revised borrowing arrangements, the term for the Existing Facility has been extended to 30 June 2020 and is now repayable in 30 equal monthly instalments. The New Facility may be repaid, at the Company's request and with the agreement of Sprott (the \"ExtensionOption\") in equal monthly instalments commencing 30 September 2018 with a final payment due 22 months later on 30 June 2020. If the Extension Option is not exercised the New Facility must be repaid in full on 30 September 2018. Notwithstanding the above, both the New Facility and the Existing Facility may be repaid by Serabi in full without penalty at any time.Sprott will receive a total fee, for the New Facility and the revision to the terms of the Existing Facility, of US$90,000, which is being settled through the issue of 2,141,798 new ordinary shares of Serabi (\"New Ordinary Shares\"). The New Ordinary Shares will rank pari-passu with the existing ordinary shares of the Company in issue and applications have been made to both the TSX and AIM for the New Ordinary Shares to be admitted to trading. If the Extension Option is exercised, Sprott will be entitled to receive a further fee of US$90,000, payable in additional new ordinary shares, ...