Sprott financed at big loss TMM debt coming dueWith all of Timmins operation as collateral and they already had an extension. they may want a rollback and more favourable terms for a second extension
December 24, 2014
Vancouver, BC - Timmins Gold Corp. (TSX:TMM, NYSE.MKT:TGD) is pleased to report that it has agreed with Sprott Resource Lending Partnership (the “Lender”) to an extension to the term of its existing CDN$13 million credit facility. The extension is subject to final documentation.
The new credit agreement will have a term of 12 months from January 1, 2015. Interest remains payable at the rate of 9% per annum. Payment of the principal amount outstanding will be made at the end of the term. In consideration of the extension, the Company shall pay a bonus to Sprott on the Extension Date in the amount of CDN$130,000 (the “Extension Bonus”) payable at the option of the Company with 2 business days notice, in either (i) the USD equivalent in cash, or (ii) in common shares of the Company at a deemed price equal to a 5% discount to the five day volume weighted average trading price on the TSX for the five trading days immediately prior to the Extension Date.
Further to its news release of December 16, 2013, the Company is pleased to announce it has amended its C$18 million credit agreement with Sprott Resource Lending Partnership (the “Lender”).
The amended credit agreement has a term of 12 months from January 1, 2014. Interest is payable in monthly installments at the rate of 9% per annum. Payment of the principal amount outstanding will be made prior to or at the end of the term. In consideration of the extension, 300,000 common shares of the Company (the “Bonus Shares”) at a deemed price of $1.20 per share were issued to the Lender, representing 2% of the principal amount of the loan. The Bonus Shares are subject to a four months and one day hold period expiring May 25, 2014.