RE: RE: RE: John Morgan What do you make of the following?
Infinito Gold arranges $200,000 demand loan
2012-04-11 09:44 ET - News Release
Mr. John Morgan reports
INFINITO GOLD LTD. ANNOUNCES ADDITIONAL FINANCING AND MANAGEMENT CHANGES
Infinito Gold Ltd. has accepted an offer of a demand loan facility for $200,000 from Exploram Enterprises Ltd., its major shareholder, and all of the $200,000 has been advanced to the company. The closing occurred promptly upon acceptance of the offer by Infinito as the funds were required urgently.
The indebtedness under the loan is to be secured under the existing general security agreement between the company and Exploram delivered in connection with the sale of convertible notes of the company on Feb. 10, 2009. Interest is payable on the outstanding balance of the loan monthly in arrears at a rate of 19.0 per cent per annum.
The loans are in addition to $17.3-million of principal in other demand loans that are also payable to Exploram, and is in addition to $50.5-million in principal owed under the prior notes.
All indebtedness under the loans is repayable on demand at any time and may be prepaid in whole or in part without penalty. In addition, all indebtedness under the loans shall rank equally with the other demand loans and senior to all other indebtedness of the company. There are no structuring fees to be paid by the company in conjunction with the loan.
The funds advanced under the loans are expected to satisfy the company's immediate working capital requirements into April of 2012 as the company continues with its corporate restructuring efforts as disclosed in its interim financial statements dated Dec. 31, 2011, which are available on SEDAR.
The company continues to undertake a detailed and continuous budgeting and review process. The company will continue to work with its major shareholder to secure financing on a short-term basis to be used to finance operations as the company works to minimize its continuing cash requirements and realize the maximum value from selected portions of its property, plant and equipment. Further financing is at the sole discretion of the company's major shareholder.
The company also announces that as a result of the continuing delays faced by the company in Costa Rica and the reduced requirement for management time, that John Morgan, president and chief executive officer, is taking the position of interim president and CEO of Infinito Gold. In this capacity Mr. Morgan will significantly reduce the amount of time he spends on company business to reflect the reduced demands for management time. Similarly Brian Orgnero, vice-president of finance and chief financial officer, has accepted a role with Infinito's major shareholder effective April 1, 2012.
With the consent of the board of directors both Mr. Morgan and Mr. Orgnero will continue to fulfill their revised respective duties with the company while the reduced time commitments will allow them to pursue other initiatives.
The board of directors and the company look forward to continuing to work with Mr. Morgan and Mr. Orgnero in their new capacities with the company while wishing them success in their new endeavours.
We seek Safe Harbor.