GREY:VMSTF - Post by User
Post by
freeedom45on May 02, 2015 7:13pm
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Post# 23688633
Bridge Loan
Bridge LoanYes, they may be raising the money to pay off the Bridge Loan (approx. $3.5M). The bridge loan principal does not get repaid from the the gross profit of the mine until the contribution loan is paid in full.
The contribution loan is interest free, whereas the Bridge Loan is not (8%). The accrued interest is paid for from the gross profits of the mine.
So, by paying the Bridge Loan now, they will save the interest payments and the gross profits will be applied solely to the contribution loan.
A financing will only trigger repayment in full (immediately), if they raise $10M in 12 consecutive months, I believe (excluding flow thru).
glta