Default and waiver Concerning the default on their credit facility.The default was waived based on conditions being met.
From their AIF,
As at December 31, 2021, the Company was in default on the Senior Credit Facility, as referred to in the annual audited consolidated financial statements of the Company as at and for the years ended December 31, 2021 and 2020, which are filed on SEDAR at www.sedar.com and subsequently, the Company received a waiver from the Lender with respect to the above-noted default subject to the following conditions:
• the Company shall provide an approved plan of development acceptable to the Lender by April 15, 2022 that relates to spending from March 31, 2022 to June 30, 2022 and by June 30, 2022 that relates to spending from March 31, 2022 to December 31, 2022;
• the Company shall pay at the earliest of: (i) the date the Senior Credit Facility is paid in full; (ii) the occurrence of an event of default other than specified above; or (iii) June 30, 2022 a fee equal to 1.5% of the $45.0 million principal loan amount plus $0.5 million; and
• the Company shall issue to the Lenders new Lender Warrants that in aggregate are exercisable for 6% of the Common Shares in the Company in cancellation of the existing Lender Warrants that in aggregate are exercisable for 5% of the Common Shares in the Company. Due to the waiver the Company has become subject to the terms of the original senior credit facility dated March 16, 2021.