Imperial and American Bullion Report on Status of
Can anyone provide some perspective on this press release? Is it as simple as RCDC lending AMBL $500K, or is there some significance to this loan that is beyond my familiarity with the arrangement?
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2011) - Imperial Metals Corporation (TSX:III), American Bullion Minerals Ltd. ("ABML") and Red Chris Development Company Ltd. ("RCDC") (collectively, the "Parties") announced on April 21, 2011 that they had entered into a settlement agreement in connection with the outstanding class action by two ABML minority shareholders, brought on behalf of all ABML minority shareholders, against RCDC, ABML and a former director of ABML, and an amended and restated arrangement agreement setting forth the terms and conditions on which RCDC agreed to acquire all of the outstanding common shares of ABML not already owned by RCDC by way of a plan of arrangement (the "Arrangement") under the Business Corporations Act(British Columbia).
ABML reports that on May 2, 2011 a notice of meeting, management information circular, notice of class certification and related documents were mailed to its registered shareholders with share certificates in connection with the special meeting of shareholders to be held on June 9, 2011. On May 6, 2011 the same documents were mailed to Canadian beneficial shareholders, with shares held by intermediaries, and to US beneficial shareholders on May 10, 2011. At the meeting, shareholders of ABML will be asked to approve the Arrangement. The completion of the Arrangement is subject to customary closing conditions, including approval of ABML's shareholders and approval of the Supreme Court of British Columbia.
ABML reports that on May 9, 2011 it entered into a loan agreement (the "Loan Agreement") with RCDC under which RCDC has agreed to advance to ABML a further loan of up to $500,000 (the "Loan") in tranches of $50,000 each. The Loan bears interest at the rate of 10% per year, calculated monthly, matures on June 30, 2011 and is secured by a general security agreement creating a charge over all of the ABML's assets. ABML intends to use the proceeds from the Loan for working capital.
ABML also reports that on May 9, 2011 it entered into an amending agreement with RCDC under which RCDC agreed to extend, from May 31, 2011 to June 30, 2011, the maturity date of the loans made by RCDC to ABML pursuant to the loan agreements dated February 18, 2005, October 22, 2008 and October 7, 2010, as amended.