Company can borrow up to value of 5,000 ounces of gold
By Lisa Kerner
Charlotte, N.C., Aug. 18 – Amarillo Gold Corp. entered into a gold-linked credit facility with shareholders for the purpose of consolidating the company's current obligations into a single structure.
Under the facility, Amarillo can borrow up to the value of 5,000 ounces of gold. The initial tranche is for up to 2,500 ounces of gold with a reference price of C$1,285.25 per ounce for a total of up to C$3,213,125.
Subsequent quarterly tranches will be limited to the value of 270 ounces as calculated from this reference gold price, according to a company news release.
Amarillo must repay the facility on the earliest of a change of control, three months following a declaration of commercial production at Mara Rosa or July 31, 2019.
The facility bears a coupon of 12%, and interest may be accrued.
Amarillo will issue 1,200 non-transferable common share purchase warrants to each lender for each C$1,000 in value advanced in the initial drawdown and 600 warrants to each lender for each C$1,000 in value advanced in subsequent drawdowns.
Each warrant is exercisable at C$0.25 for 36 months. The strike price is a 250% premium over the 20-day volume-weighted average price of the company's common share price as of Aug. 12.
Amarillo is a Vancouver, B.C.-based gold explorer.
| Issuer: | Amarillo Gold Corp.
|
| Issue: | Gold-linked credit facility
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| Amount: | Value of 5,000 ounces of gold
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| Coupon: | 12%
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| Maturity: | Earliest of change of control, three months following declaration of commercial production at Mara Rosa or July 31, 2019
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| Warrants: | 1,200 warrants for each C$1,000 advanced in initial drawdown; 600 warrants for each C$1,000 advanced in subsequent drawdowns
|
| Warrant expiration: | 36 months
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| Warrant strike price: | C$0.25
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| Pricing date: | Aug. 18
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| Stock symbol: | TSX Venture: AGC
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| Stock price: | C$0.115 at close Aug. 15
|
| Market capitalization: | C$7.69 million
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