Veris Gold receives early termination notices from Deutsche Bank

By Toni Weeks

San Luis Obispo, Calif., June 3 - Veris Gold Corp. said it received notices of early termination date from Deutsche Bank AG, London Branch with respect to payment defaults under its two forward gold purchase agreements with the bank.

As a result, the company must make a payment of $77,239,320.65 toward its purchase agreement dated Aug. 12, 2011.

In addition, Veris Gold must make a payment of $12,204,978.98 toward its second-lien purchase agreement dated Feb. 7, 2012.

Both payments are due by 2 p.m. ET on June 9.

According to a press release, Deutsche will take "such steps as necessary to enforce its rights against the company" if the payment is not received.

Veris said its restructuring special committee is considering the company's alternatives with respect to the notices and will make recommendations to the board "on an urgent basis."

As previously reported, the company fell into default of its debt repayment obligations to Deutsche Bank as a result of a fire at the mill at the company's Jerritt Canyon Mine in Elko, Nev. The fire caused a temporary production shutdown in December, and the company appointed the committee in February to investigate strategic alternatives and to plan the financial restructuring of the company.

Veris is a Vancouver, B.C.-based gold production company.

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