North American Tungsten (TSX-V:NTC, StockForum), a Vancouver-based firm engaged in the acquisition, exploration and development and processing of tungsten ores and concentrates operating in the Northwest Territories, announced today that the company had completed a US$2.5 million loan arrangement with a current customer in order to cover an existing US$2.2 million advance from that customer.
The total loan arrangement is worth US$4.7 million and is expected to mature December 31, 2018, with a 3.0% interest rate per annum delivered in quarterly interest payments commencing on March 31, 2014.
North American Tungsten (“NAT”) is committed to servicing the loan with equal principal repayments of US$293,750 due on a quarterly basis beginning on March 31, 2015 and ending December 31, 2018.
According to the news release, “The loan agreement contemplates an election right for a conversion of the indebtedness to a convertible note subject to receipt of applicable regulatory approvals.”
It clarified further, “The loan is secured by a subordinate charge on the Company's Mactung property.”
Chairman and CEO, Kurt Heikkila, summed up, “The arrangement strengthens the relationship with one of our important customers and we are pleased by the continued support.”
The company made news recently when NAT announced the extension of debt payment due dates.
Shares climbed 33% on the news to $0.10 per share.
Currently there are 238.1 million shares outstanding with a market cap of $23.8 million.