Stockwatch summary on MF and AMB dispute
Bill Sheriff's Americas Bullion Royalty Corp. (AMB) slipped 1.5 cents to 11 cents, an all-time low, on 959,000 shares. This week the company is having some trouble with one of its creditors, MF Investment Holdings, which has accused the company of defaulting on a $35-million loan. So far, Americas has drawn down only $10-million of the loan, an amount which is not due until 2015, under the September, 2012, loan agreement. The company borrowed the money to bring its Brewery Creek gold project in the Yukon closer to production. Before it can draw down the second $10-million tranche it must complete a prefeasibility study and agree to sell Brewery's first 500,000 ounces of gold to MF at a 1.5-per-cent discount to spot price. Americas says it has not defaulted and has hired a lawyer to defend itself.
Brewery Creek is the company's only remaining exploration property. It became a royalty company earlier this year, changing its name to Americas Bullion from Golden Predator in February. Before the change, Golden Predator passed along its group of Nevada gold properties to Mr. Sheriff's other company.