This is the old revolving loan
On June 13, 2012, concurrent with the signing of definitive agreement for the Sprott Facility agreement, the Company amended (the “Amendment”) the revolving credit facility with UniCredit Bank AG (“UniCredit). The original agreement with UniCredit was entered into on February 28, 2011 and provided for a US$50.0 million three-year corporate revolving facility (the “Revolving Facility”) secured over the material assets of the Company.
The main provisions of the Amendment include an increase of 1% of the interest rate on the Revolving Facility (the interest rate is based on a 90 day LIBOR plus an amended applicable rate of to 4.5%-5.5% based on specific EBITDA/Debt ratios), principal monthly payments of US$1.5 million starting from January 2, 2013 until maturity at the option of UniCredit, and the inclusion of gold production covenants to the agreement (20,000 ounces of production for each of the second and third quarter of 2012, 24,000 ounces for fourth quarter of 2012, 30,000 ounces of for each of the quarters of the 2013 fiscal year and 40,000 ounces for the first quarter of 2014). As a result of the amended provision for the monthly payment of US$1.5 million to UniCredit (at UniCredit option), at June 30, 2012 the Company reclassed $9.2 million of the debt facility to current from long-term.
The deal actually doesnt look to bad interest payments will now be $4.7 million vs. principal payments of $18 million in payments in the old loan. The interest rate is similar. Hopefully the money saved can be put towards expansion.