Aurcana Silver to enter receivership
2022-06-30 19:38 ET - News Release
Mr. Kevin Drover reports
AURCANA SILVER PROVIDES CORPORATE UPDATE
Aurcana Silver Corp. has provided an update.
As first announced in the press release dated March 21, 2022, and further to the company's press releases dated April 11, 2022, and May 19, 2022, May 31, 2022, June 3, 2022, June 20, 2022, and June 24, 2022, certain indirect, wholly owned subsidiaries of Mercuria Energy Group entered into certain standstill and restructuring agreements with Aurcana with effect as of March 8, 2022, which agreements included the grant to Aurcana of a waiver of all current events of default and a standstill agreement under the company's five-year, $28-million term loan (and an associated hedging package) until July 1, 2022, in order to allow Aurcana time to achieve certain conditions precedent. Mercuria has given the company notice that it will not provide any further extensions under the waiver and standstill and that it will be filing a motion for appointment of a receiver in the District Court for Ouray County, Colorado, in which Mercuria will be asking the court to appoint a receiver for the Revenue-Virginius mine owned and maintained by Ouray Silver Mine Inc., a subsidiary of the company. The RV mine is subject to a mortgage and security agreement in favour of Mercuria to secure amounts due Mercuria with respect to the term loan noted herein. It is expected that the receivership motion will be filed on or before July 1, 2022, and that the receiver will be appointed by the court at some point soon thereafter. As of the date of this press release no receiver has been appointed for the RV mine. As previously noted, the company and Mercuria engaged in an extensive process to restructure the debt, including by way of financial and strategic alternative transactions, but were unable to do so.
We seek Safe Harbor.
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