Woulfe Mining Corp WFEMF

Loan Maturity

[whoisyourpapa]

What happens with this loan if the deal with IMC is not finalized by Feb 25 2013?

 

During the nine months ended March 31, 2012, in conjunction with the transaction with IMC International Metalworking Companies B.V. (“IMC”) (note 15), IMC advanced $5,000,000 to Sangdong Mining Corporation (the Company’s wholly-owned Korean subsidiary), pursuant to a term loan agreement (dated February 26, 2012), for purposes of project advancement pending the closing of the transaction.

 

Interest on the aggregate outstanding principal amount of the term loan shall be capitalized and added thereto until the aggregate outstanding principal amount (including all previously capitalized interest) is paid in full on the Maturity Date. Interest shall accrue at 5.00% per annum on the aggregate outstanding principal amount (including previously capitalized interest) of the term loan. Total interest accrued to March 31, 2012 is $21,230.

The maturity date of the term loan is the earlier to occur of (i) the closing of the IMC transaction and (ii) the one year anniversary of the date of the term loan agreement, being February 25, 2013.

[ark88]

This is partly why I earlier suggested that the deal IF it was to happen would occur perhaps sometime between Jan15-Feb15, 2013.

[shiningstar2]

yea listen to ark, he's an arsepert... he quessed it would finish in the .40s when it was about .39 and he was still wrong......lol.

[BombVark]

Now that is an interesting question. Would explain a lot and not be too pleasant an explanation.

[mercurysmith]

Whoisyourpapa, as I understand it, the 26 February 2012 loan of $5M from IMC to Woulfe was at 5% interest, with the term ending on the earlier of the closing of the IMC $35M transaction or the one year anniversary of the loan (February 25, 2013).    We don't know if the loan had a renewal clause.  We do know that the agreement was for the principal amount with interest