Global Minerals note repayment pushed back to Aug.Global Minerals Ltd. banker Investec Bank PLC (legal successor to Investec Bank (UK) Limited) has further extended its credit facility of up to $2-million by amending the non-convertible promissory note dated as of Aug. 15, 2008, as amended on Oct. 15, 2009. The note, which was originally due on Aug. 15, 2009, and amended on Oct. 15, 2009, is now due on Aug. 16, 2010. The note bears interest at a rate of Libor (U.S. dollar) plus 10 per cent per annum, with interest payable quarterly, in arrears. The principal amount owing under the note is $2-million (U.S.).
In consideration of the second extension of the note and pursuant to a warrant instrument, the company has cancelled and terminated the warrant instrument, dated Aug. 15, 2008, and amended on Oct. 15, 2009, and has issued to Investec replacement warrants to purchase up to 833,333 common shares of the company at a price per share of 30 cents until Oct. 16, 2011. The number of common shares issuable on exercise of the warrant reflects the company's recent 1:12 share consolidation. If the company's common shares trade at a price 180 per cent, 200 per cent or 220 per cent greater than the exercise price of the warrants for 20 consecutive trading days, the company may notify Investec that 25 per cent, 50 per cent and 25 per cent of the warrants, respectively, will expire 30 days following the date of the notice unless exercised within that time. The warrants are subject to acceptance of the TSX Venture Exchange.
The loan from Investec was used by the company primarily for expenditures related to its Strieborna project. The proceeds allowed the company to partially finance the prefeasibility study and permitting related to the Streiborna polymetallic project in Slovakia, and to provide working capital