Loan Extension/Expansion?... Waterton not adverse to loan extensions... but of course comes at a hefty price. Funny this with GGN... orignial loan warrants were at 16 cents... so now after much progress and lower risk they have to issue 10 cent warrants? Surely there is a better way forward than going down this road.
FYI Royal Std. ultimately failed and recently announced selling all of its material mineral assets to SGN.
Coincidence?
red911
Royal Standard extends $2-million (U.S.) Waterton loan
2012-05-08 10:46 NT - News Release
Mr. Philip Gross reports
ROYAL STANDARD SECURES US$2,000,000 LOAN EXTENSION FROM WATERTON GLOBAL VALUE
Royal Standard Minerals Inc. has secured a loan extension from Waterton Global Value LP.
The loan extension is intended to enable Royal Standard to build on the positive momentum acquired in recent months. In December, 2011, the company announced a strengthened board and management team, and has since achieved several milestones, including the commissioning of the mill at Goldwedge, the company's flagship project.
Philip Gross, interim president and chief executive officer of Royal Standard Minerals, stated: "We appreciate the ongoing support of Waterton. This loan extension will provide the resources we need to continue on our path of growth and further secure the company's determination to join the ranks of Nevada gold producers in the coming months."
Cheryl Brandon, portfolio manager at Waterton, stated: "We are pleased with the underground development and the commissioning of the mill at Goldwedge. We look forward to continuing to support Royal Standard as it advances toward commercial production and as it explores its additional assets which we believe to have great potential."
As consideration for the $2-million (U.S.) loan extension, the company will provide Waterton with: (i) an additional 1-per-cent net smelter return royalty on the Pinon property, bringing the total net smelter return royalty on that property to 2.25 per cent, (ii) a 2-per-cent net smelter return royalty on the Fondaway Canyon property and (iii) a 2-per-cent commitment fee, payable at closing. Other than as described in this press release, the terms and conditions of the loan will remain the same.
We seek Safe Harbor.