TORONTO, Sept. 13, 2019 (GLOBE NEWSWIRE) -- Melior Resources Inc. (TSXV: “MLR”) (“Melior” or the “Company”) refers to its press release of September 9, 2019 regarding the appointment of voluntary administrators to the Company’s wholly-owned subsidiaries, Melior Australia Pty Ltd (“Melior Australia”) and Goondicum Resources Pty Ltd (“Goondicum” and, together with Melior Australia, the “Subsidiaries”). As a consequence of the appointment of the voluntary administrators to the Subsidiaries, the Company and its Subsidiaries have received a notice of default and demand (the “Default Notice”) from their senior lender (the “Senior Lender”) under the loan agreement dated August 9, 2018, as amended (the “Loan Agreement”).
The Company announces that it has entered into a standstill agreement with the Senior Lender (the “Standstill Agreement”) pursuant to which the Senior Lender has agreed (on certain terms and conditions) not to proceed with enforcement actions against Melior (excluding the Subsidiaries) for a period until October 31, 2019.
Under the Default Notice, the Senior Lender has demanded that Melior and its Subsidiaries make payment to it in the amount of US$22,714,700, representing the amount outstanding under the Loan Agreement as at September 9, 2019, together with related interest, costs and charges, on or before 4:00 p.m. Australian Western Standard Time on September 13, 2019. As of this date, Melior and its Subsidiaries do not have sufficient cash resources to meet such a demand for payment.
Melior is currently considering all options available to it in these circumstances in the interests of all Melior stakeholders. Additional information will be provided to the market by Melior as necessary.
About Melior
Melior’s Subsidiaries are the owners and past operators of the Goondicum ilmenite and apatite mine located in Queensland, Australia. Further details on Melior and the Goondicum mine can be found at www.meliorresources.com and regulatory filings are available on SEDAR. As detailed in the press release of September 9, 2019, voluntary administrators have been appointed to the Subsidiaries in Australia pursuant to Section 436A of the Corporations Act 2001 (Australia).
Melior is incorporated under the provisions of the Business Corporations Act (British Columbia) and has a registered office in Vancouver, British Columbia. Melior is now classified as a Tier 2 Mining Issuer under the policies of the TSX Venture Exchange.