Interesting. I would think they are testing the waters and nothing more. Macquarie made another $25 million available. I would think they wouldn't increase funds if not happy with the progess. SMF

Carpathian considers putting itself on the block

2014-02-18 16:14 ET - News Release

Mr. Guy Charette reports

CARPATHIAN GOLD INC. PROVIDES CORPORATE UPDATE

Carpathian Gold Inc. has concluded a further extended forbearance and amendment agreement with Macquarie Bank Ltd. The Agreement provides for a US$25 million increase in the amount of funds made available under Tranche 3 of the project finance facility entered into between Macquarie and the Corporation's wholly-owned subsidiary, Mineracao Riacho dos Machados Ltda. ("MRDM"), for a total facility of up to US$155 million of which $US135.5 million is currently drawn. Under the terms of the Agreement, the forbearance expires on March 7, 2014, with repayment of any funds drawn down under Tranche 3 to be effected by March 28, 2014. There is no assurance that any or all of the funds to be provided to MRDM under the terms of the Agreement will actually be made available to it as any disbursements thereof remain solely at Macquarie's discretion, nor is there any assurance that Macquarie will agree to any further extensions of the forbearance.

The Corporation continues to pursue strategic alternatives, including a possible sale or financial restructuring. Discussions continue with a number of parties with respect to a restructuring transaction. To date, however no firm proposals have been received, and there is no guarantee that a transaction will result.

As previously reported, MRDM has been undertaking remedial works at its mine site necessary to lift the suspension of the Autorizacao Provisoria de Operacao ("APO") and has requested an inspection visit by SUPRAM. Production will remain temporarily shut-down until the suspension of the APO announced on January 8, 2014 has been lifted.

Mr. Dino Titaro is the qualified person (as defined in National Instrument 43-101) and is responsible for preparing the technical information contained in this news release.