Bridge loans from todays NR
posted on
Mar 14, 2011 01:35PM
From todays NR
Bridge Loans
In the course of negotiations, Century borrowed, on an interim unsecured basis, US$800,000 from White Tiger pursuant to a loan agreement between White Tiger and Century dated February 8, 2011, as amended on February 17, 2011 and as amended and restated on March 11, 2011 (the "First Bridge Loan"). Concurrent with the entering into of the Arrangement Agreement, White Tiger agreed to advance up to a further US$3,200,000 to Century (the "Second Bridge Loan") on effectively the same terms as the First Bridge Loan, of which US$1,000,000 was advanced by White Tiger to Century upon execution of the Arrangement Agreement. The interest rate under the First Bridge Loan and the Second Bridge Loan (together, the "Bridge Loans") is 10% per annum and the Bridge Loans mature on the earlier of the effective date of the Business Combination and the termination of the Arrangement Agreement in accordance with its terms. Proceeds from the Bridge Loans have allowed Century to meet its essential financial obligations.
This from Mar 8 th NR
The losses in mill throughput resulting from the crusher failure has had an adverse impact upon the Company's cash flow and its available funds. This severe constraint on funds availability has forced management to halt the operations of the contractor responsible for the development of access to the North Wall mining area, which is now expected to delay mining in this area until May at the earliest, subject to funding availability.
All other capital projects have also been placed on hold while the Company considers its options as it seeks to meet its obligations associated with debt repayment and ongoing working capital payments as the Company continues to operate on a cash negative basis as it works to ramp up production. The delays in the capital projects will slow the ramp up process and further extend the period during which the Company expects to operate on a cash negative basis.
So it cost 200,000 to fix crusher and it looks to me that they borrowed 800,000 from white tiger ? Can anybody explain to me why we had to stop certain capitol projects? I wonder what else will come out? JMO.